New update
I've updated the client, updater, and server yesterday. More bug fixes. The client that I had uploaded apparently didn't work at all on windows 7 machines, but worked fine on winxp machines.
I hacked out all the Direct3D stuff because of incompatibilities with Windows 7. DirectX 7 and 8 3D is totally unsupported with Windows 7 (meaning it no worky at all). So that will have to wait until I can finish upgrading the client code to .NET.
The updated client and updater can update through the updater. The server must be manually downloaded.