Any plan to port this to drupal 7?

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For now, you can use D7 version of http://drupal.org/project/nginx_accel_redirect instead, and modify one line, change:

      header('X-Accel-Redirect: ' . base_path() . variable_get('file_private_path', '') . '/' . file_uri_target($uri));

to

      header('X-Sendfile: ' . drupal_realpath($uri));

PS: I think these two modules should really merge into one, the real functional difference is just this one line.

i ported and merged both modules.
http://drupal.org/project/xsendfile

Its really unnecessary to create a new module rather upgrading this one. @e-anima do you want access to the repo?

heshan it is already done and i merged it with xsend accel. this module is somehow a complete rewrite and more of this one here.