Not an option: 32bit AutoCAd in 32bit Windows (downgrade Win7 from 64bit to 32bit perhaps)), 64bit AutoCAD in 64bit Windows. Look for a third party software called LONGBOW, it may help (not guarantees): there are also numerous hacks posted all over the web on how to try and get what you want to happen. Start searching.
Thank you pendean - Longbow worked. I spent hours trying to get XP mode working in WIN7 but could not get it to work because I have a AMD Bulldozer Processor (FX-8350) even with the hotfix that MS has published: http://support.microsoft.com/kb/2519949.
After installing Longbow, you need to copy the Land Desktop media to local HDD (straight copy not an image) and then run Longbow (won't work when installing LD8 from DVD media). Thanks again.