Okay, so Windows 7 just came out. Early adopters are bound to run into compatibility problems with software designed to run on XP and Vista.
One game that has provided more than its fair share of headaches is Fallout 3 Game of the Year Edition. It would seem there is no quick fix to get the game running. The only contribution Bethesda has made to solving the problem, has been to officially announce on their website that Windows 7 doesn't support the game. They also neglect to make mention of any future patches that could rectify the problem.
I've figured out how to get Fallout 3 GOTY working on Windows 7. Furthermore, I am posting the following in the hope that it will assist in smoothing out compatibility problems with other games that present similar symptoms, i.e. not recognising discs, refusing to run, etc.
First things first, you need to download
the newest Games for Windows LIVE Update. Click the link and select Save. The file is only 27.7 MB and comes in the form of an executable. Run the executable and install the update after downloading. This should already solve some of the issues you may be having.
Now install disc 1 of Fallout 3 GOTY. This is the main game, with the second disc containing the five expansions that was previously available as DLC or separate retail purchases. Disc 1 can be installed in the normal Windows operating environment. The game will not create a desktop shortcut (so far this is the only game I've tested in Windows 7 to present this particular problem). You can do this yourself by creating a new shortcut and linking it to "FalloutLauncher3.exe" in the Fallout 3 directory.
Next you need to restart your computer. As the boot process starts press F8 and select Safe Mode. Windows will now start without loading all the extra bells and whistles. The desktop will look slightly different, but don't worry, everything will soon be back to normal. All we're going to do in Safe Mode is to install disc 2. So click Computer, enter the DVD drive and run the installer.
Now restart again and enter the normal Windows 7 operating environment.
Insert disc 1 and start Fallout 3. You will be presented with a menu. Click Data Files and be sure to check the boxes next to ALL six data files. Click Okay, then click Play.
Now as soon as you exit the vault, you'll receive notice of various strange radio messages being heard around the wasteland. These represent the new quests added by the expansions. This way you know all of the extra content is now active.