HTC Dream - Upgrade Android OS and driver for 64-bit Windows 7 Home
The Google USB Drivers that come with the android SDK will work for that device. Your best bet is to install a version of CyanogenMod 5 or 6.x. But keep in mind, that device is a dinosaur. It does not run android 2.x well at all, especially compared to the specs of current devices. 

I had CyanogemMod 6 on my ADP1 (HTC Dream/G1) and, while it worked, it was extremely slow. Also, the CyanogenMod team no longer even officially supports that device. The "old" CyanogenMod thread on XDA is here. I am not sure if it still has download links or not.