It does work but what I had to do was simply uninstall Windows Mobile Device Center (program carries over but it seems the drivers screwed up) and reinstall to properly reinstall the drivers. Once that was done it was recognized by both WMDC and the Sync Center. You will be able to tell it worked once you reinstall and informs its installed new drivers.
I had to do this due to the fact that I had upgraded vista instead of doing a fresh install of Windows 7 (which carries over all your programs and files!) Seems the drivers for mobile devices were the only things I could see effected so far so a reinstall took care of it. If you did a fresh install have WMDC and are still having issues send feedback to microsoft.
Hopes this helps
