When you run service.bat to install the service, did you open the command prompt as an administrator? Vista, Win 7 and Server 2008 are pickier about who can do things such as create new services. And being logged in with an admin account is not good enough.
Also, which version of JBoss AS? The jbosssvs.exe file is corrupt in the 5.0.x versions (it is correct in 5.1.0).
When you use "-b XXX", you must use the URL http://XXX to access the app server. You can also use the IP address for XXX in the URL. You can also use any other host name that maps to that same IP address.