I am creating a simple app using Eclipse and Blackberry JRE 7.0 as per the example given at: http://docs.blackberry.com/en/developers/deliverables/11958/Configure_a_browser_fiel
I tried to run the BrowserField demo app on 9930 (JRE 7.0.0) and encounter the same issues as you did. On the other hand, the demo worked fine on 9800 (JRE 6.0.0). I tried again on 9930 and noticed that though I definitely enabled MDS (enabled the 'Launch Mobile Data System Connection Service (MDS-CS) with simulator' in the Run/Debug Configurations in Eclipse), the MDS window didn't appear which seemed very strange.
I googled a little and found this post on BlackBerry's forums. According to this post:
An incorrect version of MDS-CS simulator was included in 7.0. To correct it you can delete it and copy the version from 6.0.
Well done, RIM!
Then, I deleted the MDS folder from JRE 7.0.0 and copied the one from JRE 6.0.0 as described in the aforementioned post. Closed and rerun simulator and voilà, the MDS window appeared. Rerun application, and everything worked like a charm!