Make sure you do a complete uninstall of both Sunsonic and Java. Use Control Panel/Programs and Features to uninstall Subsonic and all Java entries. Delete C:\Subsonic
Start with a fresh Java install to the latest version. If you have Java already, uninstall, then do a clean install of the latest version. If you use a 64 bit browser be sure to get both 32 & 64 bit Java.
http://www.java.com/en/download/manual.jsp6.31 is the current version .
Then install Subsonic directly from the Sourceforg download.
If the Subsonic service won't run after that, you most likely have OS problems and may need to reinstall Windows unless you can identify and correct the problem by looking for clues in event viewer.
I've lost count of how many times I've installed SS on both 32 & 64 bit Windows 7. It runs fine. There are detailed Windows installation instructions available in the Tutorial section.