E-5 and PSE 7. Can't open raw files. Help!

Okay, a couple of things. Since you have PSE7 that is why its not working.
You would need Adobe DNG converter (FREE) to convert ORF from E5 to DNG's.

Depending how many you took. You could download PSE10 for a 30 day trial fully functional and open all E5 in Camera RAW and process them and use PSE10.

Then you can decide if 10 is worth it and look for a sale for the best price.

Ciao,
Lou Cioccio