Question on development

This is the position I found myself in after the first 7 moves.  My questions are, is my development and position ok, and if not, why not?

By the way, I was playing black

Yes.  Structure is good, some central space is staked out, your minors that are developed influence the center, your king is castled, and your undeveloped pieces have prospects.

It looks okay to me. Black is a bit better.

I believe you may well have a slightly better developement since white played 6)Ng5 moving the same piece twice. In view of this I think I would have played

7) h3 d5  trying to take the initative.

Your development is fine, but as a suggestion.  I would have played e5, and Ne7.  This would help meet an eventual f4 by white. 

Thanks guys.  I know this post probably seemed a little silly, but I have been watching these videos for 4 days now, and practicing my game, and I am trying to see if my game is developing at all.  For once I finally had a plan, and some purpose for my moves, but wanted to know if I was making an error in my development.

When should I have played this?

Your judgement seeems fine.  As an added suggestion, Id learn about pawn structure in the openings.  It will help you understand the reasons behind the moves.

In response to those suggesting 7...d5, if he takes with e4, how do I recapture? I would prefer to capture with the queen, but I am nearly sure Nc3 would come, and I would hate to retreat back to d8.  However, if I moved to e5, he would play Nf3 and chase me again.  So, should I just recapture with knight?

I am not too strong with calculations yet, but I am thinking that if I am thinking about all of this, and questioning what to do with my queen, that I have most likely answered my question myself.  However, if there would be a better response for my queen after Nc3, I would much prefer to capture with her to develop another piece.