If you have the app called MacDrive, so windows can access the drives, as MS doesn't bother to give windows users drivers to access mac formatted drivers, then yes windows will recognise it.
If the windows PC is formatted in NTFS then yes, you can then transfer it onto the windows PCs drive.
If you don't want to reformat your drive, you can always split the dmg file into "chunks", and then when you want to put it back together into a full dmg file again, you can concatenate the file back together. Here's a program to do it with:
Free, and works like a charm. Since you have a 7GB file, just split it into 1000MB chunks, so you'll have seven 1GB files. This may solve your problem moving it to a FAT partition, since FAT only supports up to 4GB file sizes.