Yes this is the full version.
Install in recovery, not HBOOT. Once you are in recovery wipe data, cache and dalvik then flash the CM7 .zip (yes the file name says update, but it's the full version.)
Also download the most current GAPPS, you can flash this immediately after flashing CM7 without wiping anything else before you reboot. It will ask which google apps you want to install during first boot.
Link for GAPPS is in the OP of the CM7 Nightly thread as well as in the ROM's and Mod's sticky.