You need to press F10 (the default key) to go to, or press SHIFT+A until you get to, the 2D Cockpit, so that the CIVA-INS initializes. Then press F9 (the default key) to return to the Virtual Cockpit, and the CIVA-INS should work fine.



To avoid having to go to the 2D Cockpit to initialize the CIVA-INS,  I modified the panel.cfg the following way...

Change the [Window00] entry from this:

[Window00]
file=bg.bmp
background_color=0,0,0
size_mm=1024,768
window_size_ratio=1.00   
position=7
visible=1
ident=MAIN_PANEL
render_3d_window=0
window_size= 1.000, 1.000
window_pos= 0.000, 0.000
gauge00=Captain_Sim.x707.sys!main, 0,0, 2,2
gauge01=Captain_Sim.x707.sound!main, 0,0,1,1,Captain_Sim\707\sound.ini
gauge02=Captain_Sim.x707.tools!icons, 0,532,24,120
gauge03=Captain_Sim.x707.gpws!main, 0,0,1,1
;CIVA
gauge04=../civa/INS!Config,         0,    0,  0, 0, csx701
gauge05=../civa/INS!NavModeSingle,  0,  652,  1, 1
gauge06=../civa/INS!CduPanelIcon,   0,  652, 24, 24, 11041
gauge07=../civa/INS!MsuPanelIcon,   0,  676, 24, 24, 11040
gauge08=../civa/INS!AdeuPanelIcon,  0,  700, 24, 24, 11042

to this:

[Window00]
file=bg.bmp
background_color=0,0,0
size_mm=1024,768
window_size_ratio=1.00   
position=7
visible=1
ident=MAIN_PANEL
render_3d_window=0
window_size= 1.000, 1.000
window_pos= 0.000, 0.000
gauge00=Captain_Sim.x707.sys!main, 0,0, 2,2
gauge01=Captain_Sim.x707.sound!main, 0,0,1,1,Captain_Sim\707\sound.ini
gauge02=Captain_Sim.x707.tools!icons, 0,532,24,120
gauge03=Captain_Sim.x707.gpws!main, 0,0,1,1
;CIVA
gauge04=../civa/INS!NavModeSingle,  0,  652,  1, 1
gauge05=../civa/INS!CduPanelIcon,   0,  652, 24, 24, 11041
gauge06=../civa/INS!MsuPanelIcon,   0,  676, 24, 24, 11040
gauge07=../civa/INS!AdeuPanelIcon,  0,  700, 24, 24, 11042

Then change the [VCockpit01] entry from this:

[VCockpit01]
size_mm=1024,1024
pixel_size=1024,1024
texture=$FPSP
background_color=0,0,0
gauge00=Captain_Sim.x707.R01!R01_001_light, 625, 824, 56,55
gauge01=Captain_Sim.x707.R02!R02_clock, 50, 300, 155,151
gauge02=Captain_Sim.x707.R03!R03_aplight, 625, 750, 55,55
gauge03=Captain_Sim.x707.R05!R05_rmi, 275, 775, 200,200
gauge04=Captain_Sim.x707.R06!R06_001_light, 500,450, 58,57
gauge05=Captain_Sim.x707.R06!R06_002_light, 498,526, 58,57
gauge06=Captain_Sim.x707.R06!R06_003_light, 502,854, 58,57
gauge07=Captain_Sim.x707.R06!R06_004_light, 502,925, 60,57
gauge08=Captain_Sim.x707.R08!R08_hsi, 602, 275, 375, 374      
gauge09=Captain_Sim.x707.R09!R09_001_light, 402,126, 57,57
gauge10=Captain_Sim.x707.R09!R09_002_light, 402,202, 57,57
gauge11=Captain_Sim.x707.R10!R10_altimeter, 280,280, 190,214
gauge12=Captain_Sim.x707.R11!R11_vsi, 725,700, 289,289
gauge13=Captain_Sim.x707.R13!R13_ra, 252,499, 254,254
gauge14=Captain_Sim.x707.R13!R13_001_light, 500,675, 50,50
gauge15=Captain_Sim.x707.R14!R14_001_light, 300,0, 76,75
gauge16=Captain_Sim.x707.R17!R17_008_ndl, 500,125, 130,130
gauge17=Captain_Sim.x707.R17!R17_001_light, 0,0,   75,75
gauge18=Captain_Sim.x707.R17!R17_002_light, 75,0,  75,75
gauge19=Captain_Sim.x707.R17!R17_003_light, 150,0, 75,75
gauge20=Captain_Sim.x707.R17!R17_004_light, 225,0, 75,75
gauge21=Captain_Sim.x707.R18!R18_001_light, 925,25, 75,75
gauge22=Captain_Sim.x707.R18!R18_002_light, 925,100, 75,75
gauge23=Captain_Sim.x707.R18!R18_003_light, 925,175, 75,75
gauge24=Captain_Sim.x707.R16!R16_3D, 25,525,230,74
gauge25=Captain_Sim.x707.menu!main, 0, 0, 1, 1
gauge26=Captain_Sim.x707.sound!main, 0,0,1,1,Captain_Sim\707\sound.ini

to this:

[VCockpit01]
size_mm=1024,1024
pixel_size=1024,1024
texture=$FPSP
background_color=0,0,0
gauge00=Captain_Sim.x707.R01!R01_001_light, 625, 824, 56,55
gauge01=Captain_Sim.x707.R02!R02_clock, 50, 300, 155,151
gauge02=Captain_Sim.x707.R03!R03_aplight, 625, 750, 55,55
gauge03=Captain_Sim.x707.R05!R05_rmi, 275, 775, 200,200
gauge04=Captain_Sim.x707.R06!R06_001_light, 500,450, 58,57
gauge05=Captain_Sim.x707.R06!R06_002_light, 498,526, 58,57
gauge06=Captain_Sim.x707.R06!R06_003_light, 502,854, 58,57
gauge07=Captain_Sim.x707.R06!R06_004_light, 502,925, 60,57
gauge08=Captain_Sim.x707.R08!R08_hsi, 602, 275, 375, 374      
gauge09=Captain_Sim.x707.R09!R09_001_light, 402,126, 57,57
gauge10=Captain_Sim.x707.R09!R09_002_light, 402,202, 57,57
gauge11=Captain_Sim.x707.R10!R10_altimeter, 280,280, 190,214
gauge12=Captain_Sim.x707.R11!R11_vsi, 725,700, 289,289
gauge13=Captain_Sim.x707.R13!R13_ra, 252,499, 254,254
gauge14=Captain_Sim.x707.R13!R13_001_light, 500,675, 50,50
gauge15=Captain_Sim.x707.R14!R14_001_light, 300,0, 76,75
gauge16=Captain_Sim.x707.R17!R17_008_ndl, 500,125, 130,130
gauge17=Captain_Sim.x707.R17!R17_001_light, 0,0,   75,75
gauge18=Captain_Sim.x707.R17!R17_002_light, 75,0,  75,75
gauge19=Captain_Sim.x707.R17!R17_003_light, 150,0, 75,75
gauge20=Captain_Sim.x707.R17!R17_004_light, 225,0, 75,75
gauge21=Captain_Sim.x707.R18!R18_001_light, 925,25, 75,75
gauge22=Captain_Sim.x707.R18!R18_002_light, 925,100, 75,75
gauge23=Captain_Sim.x707.R18!R18_003_light, 925,175, 75,75
gauge24=Captain_Sim.x707.R16!R16_3D, 25,525,230,74
gauge25=Captain_Sim.x707.menu!main, 0, 0, 1, 1
gauge26=Captain_Sim.x707.sound!main, 0,0,1,1,Captain_Sim\707\sound.ini
gauge27=../civa/INS!Config,         0,    0,  0, 0, csx701

This modification means that the CIVA-INS gets initialized in the VC when the 707 first loads into FSX.

Always backup the panel.cfg BEFORE making any changes!

If you have any trouble with doing that, let me know.