I did some poking around and I think this is an issue with mixing 64 bit java with the 32 bit Tomcat7.exe. I manually updated my Tomcat on my dev box to be 64 bit version some time ago and forgot about it.
That said you probably have a couple options:
1. Install a 32-bit version of JRE/JDK and force it to use it (comment out the parts that search for native 64-bit versions in the registry)
2. Manually update your Tomcat to the 64-bit version (should be able to download the zip version http://tomcat.apache.org/download-70.cgi
and more or less overwrite the files)