SharePoint 2010 will install and run, including PerformancePoint Services on Windows 7. This is nice as you can now develop on a laptop without losing sleep, hibernate, other client features and driver issues.. You will need a 64bit machine, preferrably with 6-8 gb ram.
SharePoint 2010 will not install by default on Windows 7, and there are a few workarounds provided by MS here:
Successfully installed the RC bits, but was not able to install Patch 4747. Upon configuring Sharepoint, I was unable to create the configuration db. Install log stated this:
Failed to create the configuration database.
An exception of type System.IO.FileNotFoundException was thrown. Additional exception information: Could not load file or assembly 'Microsoft.IdentityModel, Version=188.8.131.52, Culture=neutral, PublicKeyToken=31bf3856ad364e35' or one of its dependencies. The system cannot find the file specified.
However, I found an additional workaround, reference here:
Follow these instructions from the above blog:
--> Download Microsoft Windows Identity Foundation, Not "Geneva" Framework.
You can get Microsoft.IdentityModel 3.5. You can get it following url.