CreateProcess fails under windows 7
The problem is that you have a 32 bit application trying to execute a 64 bit Windows command. You do not have to recompile your application as 64 bit to solve the problem. All you have to do is change all occurrences of c:\windows\system32 to c:\windows\SysNative.
In Windows 7 x64, references to c:\windows\system32 from 32 bit programs are automatically redirected to c:\windows\syswow64. Using the special alias c:\windows\SysNative causes Windows 7 to not do the redirect.