I'm going to take a wild guess and suggest that you have a 64 bit machine. You've copied the .bpl files into the 64 bit system folder (System32) where your 32 bit Delphi 7 program cannot see them. Put them in the 32 bit system folder (SysWOW64) instead and all should be well.
To learn more about the issue, read up on the File System Redirector.
If you don't want runtime packages, and all your dependencies support being built without using runtime packages, then simply uncheck the use runtime packages option.