An interesting excursus about the various generations of the Minolta SR mount:
Dead Link Removed
As far as I understand, MC lenses will work in principle very well in Program and Shutter Priority modes.
What happens is that if the lens is not closed at its minimum aperture, the Program or Shutter Priority modes will not be able to use all the apertures available.
So if you want to use not beyond f/11 a lens, and also a MD lens, which closes up to f/22, you just set the aperture to f/11 and the exposure will be "correct" anyway. The camera will use shorter shutter speeds instead of closing the aperture. You may obviously run short of shutter speeds in bright light with fast film.
X-700 (and XD-7 I suppose) have a green P in the viewfinder telling you are using the camera in Program mode. If the lens is at its minimum aperture, the P is lighted. If the lens is not at its minimum aperture, the P is blinking. MD lenses have a pin telling the camera which the minimum lens aperture is, MC don't have it and so this feature does not work.
I've never done tests myself (all my lenses but one are MD and I basically never use Program) but I do suppose that one can use Program with MC lenses without problems.
Fabrizio
PS The speed of the diaphragm blades cause a problem, see link above.