How to coach a seven your old?

I have been asked to give some chess coaching to an intellectually gifted 7 year old. I was thinking along the lines of teaching the rules of the game and then some basic endgame drills. Any tips will be appreciated.

I would follow the methods given in Lev Alburt's and Roman Pelts' book, Comprehensive Chess Course.  It is a series of very instructive books.  Start with the first one.  It suggests learning the board at the very start.  makes sense, you gotta know the battle ground in which you fight on.  

Thanks SS22. I have chessmaster software, do you think the lessons in there are any good for teaching really young kids?

Check out that book first, It is methodical and makes learning chess easy to grasp.  It will give you room to be creative as well.  I do not recommend software for anyone just learning.  Just a board and pieces with hands on experience.  The book is made for the teacher, not the student.  Trust a GM's teaching guidelines and I am sure you won't steer your student(s) wrong.  

The Manual of Chess Combinations by Ivashchenko is a Russian chess training program for kids.  All puzzles, no text.  The first volume is all one and two move ways to mate or steal a piece.  Highly recommended.