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Have you tried starting it from the command-line, using the standalone.bat file (located in the bin directory under the jboss install folder)? If so, does it start ok that way?
Thanks James, I followed your advice and tried installing using standalone.bat file. It did install the server but it gave following error while starting
The server's configuration file does not exist: F:\Eclipse EE\Server\jboss-as-7.1.1.Final\jboss-as-7.1.1.Final\standalone\configuration\Eclipse
Then I went back again and tried using the specified folder and the server started normally. I don't know why it was not starting earlier and started later on but anyways, It's working now. Thanks for help.
No problem - pleased it was so easy. I always start with the command-line option thanks to my Linux upbringing