Logging may or may not work in Win7. Check you C:\ root directory; that's where it saved them for the older version of windows. As for getting this script working; it's pretty simple. Again, this is meant for OSI or RunUO shards that are AOS or better. I'm running around OSI-Sonoma right now and it's working great. I'm guessing you are playing an old-school freeshard.
Oh, and log file works fine. C:\ Win7 is a bit more friendly about writing to the C:\ than it once was when Win7 was first released.