Whoever packaged the Updated Demo messed up.

1) Download WinRAR
2) When it is installed, close it
3) Navigate to where you unzipped Fifa 2007
4) Right click on the ZIP file "0compressed"
5) Select "Extract Here"
6) Say "Yes" to any files it wants to overwrite
7) WinRAR should have extracted all the necessary data files into the correct folders
8) Delete the ZIP file "0compressed" (Just wasting space now)
9) Double click on "fifa07 demo.exe" and enjoy!