Thanks for your question. Unfortunately, the versions/programs available in Fantastico are set by the makers of the Fantastico de Luxe software so we have limited ability ourselves to modify them. Since there are so many programs in Fantastico, a new version isn't released each time one of the programs is updated. When Fantastico releases a new version we also update the version in your cPanel automatically as quickly as possible.
Since it is a new install, I'd recommend installing 7.0 in Fantastico (this way the database and configuration files are made automatically), and then upgrade to 7.7 from the Drupal site at <a href='http://drupal.org/node/1231826'>drupal.org/node/1231826</a>. While it is a few extra steps to upgrade manually versus in Fantastico, it is easier with 7.0 already installed then starting from scratch. For minor upgrades (which this would be since you are still using version 7), you can upgrade straight from 7.0 to 7.7 without any issues. If you have any questions in the process of upgrading 7.0 to 7.7 please let us know!
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