Hi Faizaan,
Firstly, I would suggest you toopen event viewer and check if there are any other significant error messages/codes related to the issue and post it back.
Refer the link below for more details:
What information appears in event logs (Event Viewer)?
http://windows.microsoft.com/en-US/windows7/What-information-appears-in-event-logs-Event-Viewer
Also post back the exact internal error message you receive.
However, you may try to put the computer in a clean boot state and check if any third party application or services is causing this issue and if you can resolve the internal errors and starting the server service.
Access the link below and follow the steps to troubleshoot a problem by performing a clean boot in Windows Vista or in Windows 7
http://support.microsoft.com/kb/929135
If your issue is resolved after performing clean boot, then follow the steps mentioned in the following KB article to narrow down the exact source.
Also, see the section on how return your computer to a Normal startup mode by following the steps under “Reset the computer to start as usual”.
You may also check if all the dependency services for Server service is started and try to start it and check if it helps.
Hope this helps. Let us know the results.
Thanks and Regards,
Srinivas R
Microsoft Support.
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