Well, the 320gb is recoginzed properly in W7 RC via an IDE adapter through a different USB 2.0 device (all purpose enclosure). PMM 2.30 had no issues with recognizing it as a DMS, so it worked as normal. It was speedy as well, but the initial time to recognize PHTDATA didn't really change. Not a problem however.
It would seem that the USB 2.0 cradle and W7 RC have some sort of conflict that prevents the 320gb from completing the full initialization (it shows in device manager as reported above as a generic, not a WD -USB driver???). Not sure what that is at the moment. The 120gb doesn't have this issue. There isn't an issue with a jumper setting, but it might be something to try anyway. Haven't tried the USB 1.1 cradle, but I'm think what's the point? Hmmmmm.....
It would be cool to rig up some sort of USB 2.0 or SATA solution with the appropriate electronics and connector/adapter to accomodate the DMS' small connector along with 5v power and ditch the cradle. Again, not sure what the problem is, but with the cradle out of the loop, W7 works with the 320gb w/o issue. Not sure what's next as far a resolution is concerned for W7 RC? Don't get me wrong, I like the cradle as it certainly has its place without a doubt. This was just an idea at this point.
Bottom line: I'm just glad that at least 2.30 and PhatHack work in W7 RC, albeit without the 320gb unless its removed from the DMS case and rigged up a different way in order to work. Not sure about PMM 3.92 yet........... Maybe this will be resolved at some point in W7 and the RTM version?