If previewing the specification makes the form appear to be 11", then the form length is not correctly set on either the invoice specification or the printer driver. Good to hear the printer form feed itself is OK.
On a previous posting, a screen shot of the place to change the form length within the Adagio specification designer was submitted. Make sure that the change was saved. You may also want to (temporarily) change the specification title (on the same screen) to make sure you are testing with the correct spec file. Note also that print preview from within the spec designer program is also a test you can do to determine the correct page height is working.
The printer driver must also set the page length to 7". You could also test with the 'Generic/Text' driver, rather than the factory driver.
There won't be any use to printing to paper until you see the preview screen change and show a shorter form.