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Whats the current best way to emulate a OS 7 machine, and pass in files from a site like this?

Look up Basilisk or Sheepshaver. Main hits for those will tell you the rest of the details.

I've had the most luck with Mini vMac. Shoot me an email if you need a bootable image, I have one for System 6 and System 7.

Mini vMac is excellent, but I'm not sure it's the best for OS 7, because it can't emulate a color display.

I've got Mini vMac Color working with System 7.5, send me an email if you want it!