Ken,
There are a few things here that seem mixed together, so I am not 100% sure what you are trying to do.
Generally speaking SnapCenter 2.0 needs to use VSC 6.x for the purposes or protecting virtualized databases and protecting VMware VMs and/or Datastores.
SnapCenter 2.0 doesn't have any native VMware virtual machine or datastore backup and recovery features, so the backup and recovery features of VSC are used.
SnapCenter 3.0 does not have any direct integration with VSC. This is becuase with SnapCenter 3.0 native capabilities for VMware virtual machine or datastore backup and recovery features have been added. VSC integration is no longer needed. In fact VSC 7.0 no longer has backup and recovery features as SnapCenter has completely taken them over.
SnapCenter 2.0 can not be used with VSC 7.0. There is no integration there.
SnapCenter 3.0 and the SnapCenter Plug-in for VMware vSphere needs to be used instead.
Concerning installing the plug-in, just like VSC, SnapCenter requires a Windows host to install the plug-in software.
This should be a standalone Windows host (physical or virtual, doesn't matter), but not the SnapCenter Server and not the vCenter appliance.
SnapCenter Server <--> Windows host for vSphere plug-in <--> vCenter <--> ESX
When you install the vSphere plug-in it is pushed out from SnapCenter and installed to the Windows host. Then the Windows host connects to vCenter.
The run as account that you specify when installing needs to be a domain user with local administrator access.
Hope this helps,
John