Power steering was first introduced by Bristol in the later 409s from chassis 7351, informally known as the 409 S2 (Series 2).
However, power steering was retrofitted to some earlier 409s, and it is not inconceivable that it could be fitted to a 407.
mustdav, could you post a photo of your 407 engine bay?
Just on power steering pumps in general, running one for any length of time with insufficient fluid will damage the pump to the point where it is not very effective, or the efficacy will be significantly reduced.
Personally, if power steering fluid has got too low and air has entered the system, to be on the safe side I would refill the fluid reservoir, then raise the car (or at least the front wheels) off the ground and slowly turn the steering lock to lock about a dozen times (or at least until no more air bubbles can be seen in the fluid reservoir). It should be then topped up again if necessary and the level checked again after it has been driven a little.
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