M.,
Your little one sounds like a mommy milk fed baby. Always hungry ... it's in their design. But given the chemical nature of formula he definitely should be feeding less often. It is also possible he's overfed and very uncomfortable.
Proper burping is KEY to both the spitting and the feeling full. Work on burping your little man half way through the bottle and then again after he's finished. Have your Pediatrician show you the best ways to do this.
At 7 weeks old, I would have to say that the possibility of reflux as opposed to the even stronger possibility of a gastrointestinal discomfort caused by the formula itself is pretty slim. And as one posted mentioned babies are not designed to digest anything but the real deal or formula until they are at least 4 months old, minimum. So cereal is always a bad idea, and I'm shocked that it's so often prescribed by their Dr's along with the meds for reflux.
I would say start with the burping, make sure the nipple on the bottle is the right flow for your little one and go from there. <http://www.aventamerica.com/pdf/pdf/flow_rate_chart_rev5....;
Wishing you the best!
Rolinda
Wife, Mother, Friend