Appalachian State's first game of the 2007 season was a 34–32 upset win over Michigan, who were the No. 5 ranked team in FBS at the time. Appalachian State went on to finish their regular season with a 9–2 record (5–2 in conference). The Mountaineers defeated James Madison, Eastern Washington, and Richmond to reach the final. This was Appalachian State's third consecutive appearance in the championship game, having won the title in both 2005 and 2006.
Delaware finished their regular season with an 8–3 record (5–3 in conference). The Fightin' Blue Hens defeated Delaware State, top-seed Northern Iowa, and fourth-seed Southern Illinois to reach the final.