I'm currently running KB:AP on Windows 7 Home Premium, 64-bit, and having no issues with the latest patched version.
I had some serious issues with the initial release of KB:CW, but none that appear to be due to Win7. I uninstalled KB:CW until the problems were patched and have not yet re-installed, so I can't say if the patch introduced any Win7 issues. That said, if it had, I think we'd see people posting about it, and I haven't seen anything other than the rune mage CtD, which I believe has been fixed. It appears the patch is stable.
There is a DVD version of KB:AP, but KB:CW has not yet been released, at least not in English.
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