MechVM + the titanium versions of Mechwarrior 2 definitely worked on Windows 7 64bit.
Ordinarily I'd say skip MechVM, and try running the Titanium CDs in DOSBox, but I can't remember
how gimped the dos versions included on the titanium CDs are.
Mech2.org is the definitive resource for the Mechwarrior 2 games.
Someone on mech2.org had a similar issue with Windows 8.1 + MechVM w/ Titanium disc.
http://www.mech2.org/forum/viewtopic.php?t=1384 The fix someone in that thread came up was to use the free version of VMware Player + Win98 SE, then install the Mechwarrior games in software mode.
Mechwarrior 2 CD's are always fun to deal with, because there is roughly 7+ different CD versions for each Mechwarrior 2 series game. Some of the Mechwarror 2 CD's are hardware dependant (require the original GPU card/sound card), others are shareware versions, and others are pure DOS versions or pure Win95 versions. Overall, the pure DOS CD versions of the Mechwarrior 2 series games are superior, because they can be run in DOSBox with zero issues.