The latches are labeled 0 through 6. The latches are shifted right 1 latch, and the value that was in latch 6 before the shift is placed into latch 0 and xor'ed with latch 4 (the value that ends up in latch 4 is the xor of the prior latch 3 and latch 6).
For the polynomial, it's not clear if the left latch or the right latch is considered to be the most significant latch (bit). The hardware diagram shows a right shift, but that diagram could be reversed, shifting left instead of right, still using D6 to xor into the data bit stream.
The diagram is a bit confusing, since it shows D0, D4, and D7, but there are only 7 bits, not 8.
This LFSR will cycle through all 127 possible non-zero 7 bit values before repeating. Here is a table of the cycle pattern, shown in hex:
01,44,22,11,4c,26,13,4d,62,31,5c,2e,17,4f,63,75
7e,3f,5b,69,70,38,1c,0e,07,47,67,77,7f,7b,79,78
3c,1e,0f,43,65,76,3b,59,68,34,1a,0d,42,21,54,2a
15,4e,27,57,6f,73,7d,7a,3d,5a,2d,52,29,50,28,14
0a,05,46,23,55,6e,37,5f,6b,71,7c,3e,1f,4b,61,74
3a,1d,4a,25,56,2b,51,6c,36,1b,49,60,30,18,0c,06
03,45,66,33,5d,6a,35,5e,2f,53,6d,72,39,58,2c,16
0b,41,64,32,19,48,24,12,09,40,20,10,08,04,02
The C code for implementing one cycle of this lfsr using the int variable i:
i = ((i&1)<<6)^((i&1)<<2)^(i>>1);
You didn't include what the starting value is, but just assume it's hex 01 as shown in my example table. Data is encrypted or decrypted by xor'ing latch D6 from the lfsr with symbol data bits, least significant data bit to most significant data bit. I think you only need to create a table of 127 n bit patterns. I confirmed this is true for 8 bit and 16 bit data. The table for 8 bit data:
c9,f2,0e,7f,dc,28,7d,15
da,73,6a,06,5b,17,13,81
64,79,87,3f,6e,94,be,0a
ed,39,35,83,ad,8b,89,40
b2,bc,c3,1f,37,4a,5f,85
f6,9c,9a,c1,d6,c5,44,20
59,de,e1,8f,1b,a5,af,42
7b,4e,cd,60,eb,62,22,90
2c,ef,f0,c7,8d,d2,57,a1
3d,a7,66,b0,75,31,11,48
96,77,f8,e3,46,e9,ab,d0
9e,53,33,d8,ba,98,08,24
cb,3b,fc,71,a3,f4,55,68
cf,a9,19,6c,5d,4c,04,92
e5,1d,fe,b8,51,fa,2a,b4
e7,d4,0c,b6,2e,26,02
As an attempt to explain the polynomial, reverse the LFSR, so D[6] is on the left, and D[0] is on the right. Start with an initial value of 1000000 and perform a Galois polynomial divide (xor is used instead of subtract) by 10010001 (D^7 + D^4 + 1), appending zeroes as needed to cycle (shift) the LFSR
10010001 | 1000000 (01 reversed)
10010001 (D^7 + D^4 + 1)
-------
0010001 (44 reversed)
0100010 (22 reversed)
1000100 (11 reversed)
10010001 (D^7 + D^4 + 1)
-------
0011001 (4c reversed)