Does it run on Windows Phone 7?

No

Why?:

Because Windows Phone 7, only allows third party applications and games that run under either  the Windows Phone 7 specific version of Silverlight or XNA. There are a lot of disappointed users and application developers all over the globe...

• Silverlight: is an Application Framework for running rich internet applications. Read the Wikipedia page on Silverlight.
• XNA: is a set of tools with a managed runtime environment provided by Microsoft that facilitates game development and management. Read the Wikipedia page on XNA.
• Read the Wikipedia page on Windows Phone 7.