Quartus II v10.0 + ModelSim + Windows 7

Our student labs are running Windows 7 and Quartus II (v10.0 subcription ed). Since QII v10 no longer has the internal simulator, we're looking to install ModelSim-Altera Starter version. Altera states that ModelSim does not support Windows 7. What does this really mean? ModelSim hasn't been tested extensively under Win7 or it breaks on fundamental operations or it breaks on obscure features?

What are others running Windows 7 doing for simulation? Do we have to revert some labs back to Windows XP? Can we run ModelSim on XP under Windows 7? Should we be looking to a non-Altera solution? (We have many hardware board types but all are Altera.)