Yes it's possible; however there may be specific scenarios that may fail (because there same regsitry and folder locations exist virtually and locally).
You might consider doing the following (and testing the result)
- Install Project 2007 on the sequencing machine before capturing the Project 2010. This will capture Project 2010 as an upgrade and should effectively hide Project 2007 from Project 2010
- Before deploying, remove the file type associations from the Project 2010 package to ensure they don't override the FTAs for Project 2007
