[Jac Mac]

7 quarts is the 'System' capacity, I assume you have a normal size filter so that probably holds about 0.5 to 0.75 of a quart, more if your using a remote filter & lines. So if you simply poured 7 quarts in and calibrated the dipstick before starting the motor you might have an issue there.
Depends on any windage tray or baffle system in the pan, but ideally you want to keep the crank and rods about 1.5" or more away from the oil level in the pan. This becomes a bit of a balancing act with stroker cranks because if you get the oil level too low the pump can pull air rather than oil, eg the pickup needs the oil level to be at least 2" above it with engine running.