This indicates a problem with the "services" module (ftp, http, telnet were the 3 services support at one time) and these are not the same as windows services. Check the settings under [FTP_Services] in the .ini file and the devices associated with it as something there is having problems / missing / etc. Try starting with the .ini file from the original zip just to prove the server will start fine and it's a settings issue.
I haven't tested it with win7, but win7 isn't very different than vista or win2k8 and ioFTPD works fine on both of those.
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