How to backout a new fixpack? I installed 9.7 fp7 on top of 9.7 fp2. If I want to go back to fp2, what is the process? This is a Windows server with 1 instance and 2 databases. Do I just uninstall db2 and reinstall 9.7 fp2? Do I need to recover the databases?

I always install fp in new path - use this path for instance and later remove old path
in your case I would stop instance - remove db2 - install code from fp2 - apply license
do you have valid backup of db in previous fp ??
Uninstalling fix packs - IBM DB2 9.7 for Linux, UNIX, and Windows