There is technically no 'time frame' for processing a distribution from a 401k. But that doesn't mean that the employer can just leave it sitting on their desk because they don't feel like being bothered.

While there is no legal time frame, as long as the plan document states that distributions are to be done after a separation event (i.e. termination of employment) then the employer is obligated to process your request. Some documents can delay distribution until after the end of the year or another future date.

With that said, April 2007 is a little long to be waiting around for your rollover to be done. You have a valid complaint that you can bring before the U.S. Department of Labor. You should contact the local DOL field office. There should be one in your state, or neighboring state depending on where you live.