saby:Hi,
According to this list, it should since a driver is available.
The 700-USB does work in Windows 7 (and 8) - I use one here.
But unless your Pinnacle Studio 10 installation disc is for version10.6 or later, you will not be able to install it in anything later than Windows XP using the installer on its disc...
But a Vista installer for version 10.6 (should also work in Windows 7), followed by a 10.8 patch was made available; they have long since disappeared from Pinnacle's website, but you may still be able to find them on some third-party sites run by regular contributors to these forums. For starters try this page on pinnaclestudio.info and this page on Déclic Vidéo
BTW, if you were thinking of upgrading to a newer Studio version, the 700-USB can be used as a capture device in Pinnacle Studio 18
HTH
Richard