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Just installed mydac11.exe which I believe is the correct version for Delphi 2007.

Installation completes with no problems. I then add the TMyConnection component to a test program and get this error when I compile:

[DCC Error] Main.pas(7): F2051 Unit MemDS was compiled with a different version of DB.TUpdateStatus.

When I installed Delphi 2007 I did not include the DB components. Is this the reason for the error, or did I install the wrong version of mydac?

MyDAC uses standard Delphi classes, in particular - the ones included into the DB module. Therefore, to use MyDAC, you should re-install Delphi using DB.