I don't know what the problem is.
A couple things I would try if you haven't already...
Since you are using Windows 7,
try running it as an administrator (right click on icon on desktop)
or running it in compatibility mode for Win XP service pack 3
personally I suggest using Duxa's all in one installer from this sticky:
http://www.project1999.org/forums/sh...ad.php?t=28335
Even though you said you followed all of the instructions for getting started, the all in one installer makes it hassle free
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