I've never heard of ResidualVM, and from the sound of it, I think it's best to stay clear of it...
If you want to play Grim Fandango on Windows 7, then you'll probably have more success downloading this installer. It worked for me on Vista and is supposed to work on Windows 7 as well.
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Currently playing: Again, Escape from Monkey Island (replay), King's Quest VI: Heir Today, Gone Tomorrow
Next in line: King's Quest VII: The Princeless Bride, Gabriel Knight: Sins of the Fathers, The Last Express, Time Hollow
Recently finished: King's Quest V: Absence Makes the Heart Go Yonder, The Curse of Monkey Island (replay), The Elder Scrolls IV: Oblivion (abandoned), Mass Effect 3
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