audio utilities in Windows 7
mute.exe works fine in Windows 7. setvol.exe "sort of" works. More below about setvol.exe.
You can get the audio utilities to work in Windows 7 this way.
Any shortcut created from the executable will have the same compatibility setting. Many thanks to Jared Pickerell for writing me with this solution!
setvol.exe issue
At least on my Windows 7 Professional 32-bit, setvol.exe works but not precisely. For some reason the values do not have the expected results. Here's a table of values set in the shortcut and what the actual results are.
You can see what the volume is set to by making sure mute is off and hovering over the volume icon in the Notification Area.