I just installed Norton AV 2007.
Ugh! The single worst anti-virus product on the market, in my opinion.
It's disabled Defender. Is there a need to
re-enable it?
Yes. Norton Anti-Virus is, as its name implies, an anti-virus product.
Windows Defender is an anti-spyware product. Each protects you against
different things.
I've heard mixed remarks regarding Defender.
I don't think Defender is the best anti-spyware product available, but
unless you replace it with something else, you should definitely keep
it. Also note that no single anti-spyware product is good enough
protection, and you should run at least two.