I cannot use the newest version in windows 7 because when it tries to start apache, it trips up on some windows security setting or something and fails to run, there is no popup error message, but event viewer reports: "The Apache2.2 service terminated with service-specific error Incorrect function..". I have tried installing it on the non-system drive and it makes no difference.
When I run version version 1.6.8, Filezilla does not start properly during boot time as a service, but it DOES run properly when I ask it to start from the Xampp control panel. I am going to try stopping/starting it and reselecting options in case I chose wrongly. I'll post the results after a reboot.
With the newer Xampp, event viewer showed a relevant error: "The FileZilla Server FTP server service is marked as an interactive service. However, the system is configured to not allow interactive services. This service may not function properly." I do not recall if it successfully started on boot.