The version 7 evaluation has two modes of operation: Player and Evaluation. In Evaluation mode, you can edit and save VIs, but it times out after 30 days. In Player mode, it does not time out, but you cannot edit or save VIs. Therefore, in Player mode, there are no palettes, and the "place on block diagram" and "find in palettes" features don't work. This is a known issue in Player mode.
You can tell if you are running in Player mode from the launch dialog. If the "New..." button is grayed out, you're running in Player mode. If it's not, you're running in Evaluation mode. You can switch modes by reinstalling.