Sorry if i was unclear. After loading fm07. Click start new game. A choose database box will appear. The first line says " please choose a database to use to start a new game."
Under that it says database, then your version.
If you click where it says the version a drop down menu should appear. You can then choose a database from the list.
If this is not the case.
Look what you have installed.
look in:
c

program files\Sports Interactive\Football Manager 2007\data\db
There should be a file for each update you have installed. i have 3 files called 700, 701 and 702. If those files are not there, you dont have those databases installed. Look inside each file at the xml file. If the folder is called 702 make sure the xml file is called 702.xml (i have read about these causing problems for some people)
If you are looking for a database you have edited yourself they should be placed here:
C

My Documents\Sports Interactive\Football Manager 2007\db.
If they are in the correct place they should appear in the choose database box when you start a new game.
If you have edited a database then loaded up your saved game, you wont see any changes. You have to start a new game.
I hope this is clearer and helps sort out your problems.