My motherboard is MSI 880GMA-E45 which has an on-board graphics card, ATI Radeon HD4250. After I install the utilities and drivers using the MSI disk provided, I find that in DxDiag.exe my DirectX version is 11, which is the newest. It is mysterious because this motherboard supports DirectX 10.1. Perhaps Windows Update updates it?
The updated DX either came from MS or ATI through the updates or utilities that you ran. I also have a DX10 mobo but am now updated to DX11........ not gonna complain about that
Windows 7 comes with DirectX 11 so it'll be on there. Whether or not your graphics can take advantage of it is a different matter, for example my HD4870X2 only supports DirectX 10.1, but dxdiag says DirectX 11 as it's included in 7 if I installed a DX 11 capable card