If you want to use Elgato Game Capture HD60, then you must have Windows 7 Service Pack 1 (SP1) installed.
If you want to use the older Elgato Game Capture HD with the newer Elgato Game Capture HD 2.0 software, then you also must have Windows 7 Service Pack 1 (SP1) installed.
Installing Windows 7 SP1
If Windows 7 Service Pack 1 (SP1) is not installed, you will receive an error message that says "This application is only supported on Windows 7 SP1 or higher".
To find out more about Windows 7 Service Pack 1, and how to install it, please see this article at Microsoft.com: