Good luck getting it running! I don't recall there being that much difference between icons in XP and 7, but I pay more attention to folder names than to what they look like. The whole "libraries" thing that look like folders has thrown me off at times, though. He should be able to take the whole "FreeSpace2" folder from My Documents and drag it to the C: drive, or you can create a 'games" folder in the c: drive and drag the FreeSpace2 folder there.
On a side note, if you have the CDs, there is no harm in trying them if you already have them. The person I was responding to did not have the discs, and was debating going to the effort of importing an old disc vs. buying and downloading from GOG. I was speaking from personal experience with an old CD failing, and recommending to him to get it thru GOG.