Make sure you have the latest version of Games for Windows, although I thought that automatically updated whenever you ran a game with it. Also, don't use version 1.0.7. I've had nothing but problems with that, and so have a sh!tload of other people. Revert to version 1.0.4. You shouldn't have to reinstall for that, just find the 1.0.4 download, and install it over the top, and it will replace 1.0.7 (at least that worked for me, if it doesn't, reinstall and update to 1.0.4). Also, just about the only thing making it worth the hassle of getting the PC version to run is the mods, and the majority of them are made for (or at least work best) on 1.0.4. Other than that, I didn't have to run in any compatibility mode (i'm also running windows 7).
Try this. Go to your game install directory, find gtaIV.exe AND launchgtaIV.exe and set both of them to run as administrator. Then, don't open either of them. Go in the RGSC folder, and run RGSClauncher. Then, run gta through the "play" button in the Social Club window that pops up. That's what I had to do to get it to run. It's always done the same thing that you described to me if I try to open it from either of the actual gtaIV exe files. Even if RGSC is already running, I can't get it to open from those files. Try opening it through RGSC. If that works, just always do it that way.
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