Well, I'm happy to say, for anyone who is familar with it; VasFMC WILL work with the 707!

What I did was set up and aligned the CIVA-INS ONLY, without entering any waypoints, and then of course flip the INS/Doppler switch into the INS position. After I was in the air, I hit the A/P Couple switch in VasFMC, set the 707 FD to HDG and flipped the A/P switch NAV and voila! the HDG bug swung around to follow my plan in VasFMC.  :)

Robert-