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Tony,
You may also want to check to see if something else is using port 7788. I've run into issues before where a user installed a free screensaver (a.k.a spyware) and itusedport 7788thereby keepingthem from starting Pro/E. More recently, one of two people at a remote office that connects via a VPN would have intermittent issues with Intralink refusing to connect (no nmsd process). It turned out the port used by the nmsd.exe process (1239) was often getting grabbed by the VPN software itself.In tha case I had to create a batch file that starts the nmsd process and set it to run at login to their local PC. That makes the nmsd.exe grab the port before the VPN software has a chance to.
Anyhow, try running the command netstat -ab from a command prompt window to get a report on ports in use and what is using them. If you see something using 7788, that might be your culprit.
Regards,
Erik