Thank you for yur post.
The documentation for Server 7 is a bit old (we are now on Server 10). I would uninstall and reinstall FileMaker Server. In addition, I would download the updates to Server 7 (7.0v3 and 7.0v4). You can download these from our web site at:
Click on FileMaker Server 7 and you will see both updaters available to download.
Let me know if you are still having difficulty.