it has been reported on the forums that there was an issue with the new zipcode search released with dolphin 7.0.7, then further in that post it is mentioned that not only does the new zipcode search not work, it also breaks the paid module from kolimarfey for zipcode search.
kolimarfeys zipcode search on Dolphin 7.0.6 was working. the upgrade breaks his zipcode search. and the zipcode search released with dolphin 7.0.7 does not work.