I can’t make the application frame go away in Windows 7.
You mean when you use full screen mode it doesn’t go into full screen? Is that what you’re saying? Because I can do it… 
yep.
Full screen no borders works fine in XP. On the Win7 machine, the same project displays with a frame and title bar no matter what I do. Having designed the screen expecting the full screen resolation, this gets messed up with scroll bars because the frame takes up space on me.
Is there some Win7 setting somewhere?
Good question, but not one I know the answer to. I searched a bit but found nothing. Check your videa card driver settings and directX setting perhaps?