Is the new version backwards compatible in anyway with Windows 7 and BranchCache 2012. Some great new features but most of the companies I know have hardly put in Win7 let alone going to Win8

Yes, Windows Server 2012 is compatible with Windows 7. Usually a new general Windows server will always be downward compatible with earlier versions or earlier technologies. If at any time any kind of compatibility problems are encountered within Windows products, you are welcome to contact Microsoft. Thanks Zhang

Does that mean that if BranchCace is set up for a Windows 2012 File server and with multiple Windows 7 clients, and the clients are configured with distributed branch cache, that the cleinst are able to detect a hosted branchcase server if available at the site and automatically reconfigure and connect to that? Or is this only the case to Windows 8 clients. Does one need a Windows 2012 DC?