Err-7 was common untill Anet re-routed a few weeks ago..I had no problems after that..proof positive that it was a routing problem..now, since the Halloween patching, it's back again
I've Err-7 about 7 times to-day...aarrgghh
As far as I know, error=7 is just an error you get when your connection with ArenaNet is lost. Try pulling out your network cable when you're logged on, you shold get an error=7 as well. If I'm right, it'd mean it could pretty much be anything.