To the previous question, it's the XP 'Clients' that don't seem to have the problem.
I am confused

Do you mean tests related to Windows 7 systems did not work properly even when HostMonitor was installed on XP system?
I thought you migrated HostMonitor to Windows 7 system and then tests (related to other Windows 7 systems) cannot be performed.
I had picture like this
1) You was running HostMonitor on Windows XP and HostMonitor was able to check remote Windows XP, 2003 and Windows 7 systems
2) You moved HostMonitor from Windows XP to Windows 7 and HostMonitor was able to check remote Windows XP and 2003 systems while tests against Windows 7 systems works unreliable
3) You moved HostMonitor from Windows 7 to Windows 2003 system and nothing changed (compared to configuration #2): HostMonitor is able to check remote Windows XP and 2003 systems while tests against Windows 7 systems works unreliable.
Do you mean that HostMonitor is able to check without problems only systems under Windows XP regardless where HostMonitor is installed (Windows XP, 2003 or Windows 7)?
that there is some issue with PerfObj and the processor, but does this ring any bells ?
I don't think errors like 'RPC call failed' and 'RPC server is unavailable' can be related somehow to Performance Counter DLLs and objects. It looks like some network related problem or RPC service problem.
Also, UNC and NT Event Log tests do not use Performance Counters. UNC test uses network client only.
Regards
Alex