I had some minor RACF related problems, but nothing bizarre. One was 
related to dumps. I could not get any dump because we did not have these 
profiles defined under FACILITY class:
IEAABD.DMPAKEY
IEAABD.DMPAUTH
The other problem was DB2 related. We had class DSNR defined but it did 
not have a generic profile or profiles for DB2 commands. Because of that, 
I could not issue any DB2 commands.Even the install SYSADM had no 
authority.

I really recommend you read these documents:
Z/OS Migration (from Z/OS V1R4)
http://publibz.boulder.ibm.com/zoslib/pdf/e0z2m13a.pdf

z/OS V1R7.0 Introduction and Release Guide

and the "Migration Considerations for Z/OS R7" presented by Marna Walle 
([EMAIL PROTECTED])

If your site has lots of JES2 exits, you'll have some work to do because 
JES2 has new exits. 
For JES2go here: 
http://www-
03.ibm.com/servers/eserver/zseries/zos/installation/zos17_jes2_migration.ht
ml

Remember to install the compatibility/tolerance PTFs on your Z/OS 1.4 if 
it the 1.7 will be on the sysplex.

I hope this helps,

Heloisa

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