This is an odd one.
Sometimes it just means your computer needs to be rebooted.
Since they are using SystemD for Qubes, that there has many inherent issues. They are using a version of Linux that is becoming Windows similar, as in everything controlled by the kernel instead of everything being separate.
Thus if there is an issue in SystemD, then everything falls in a heap.
So if that doesn't work, then there is another issue.
If you leave the config as normal, but in the Guest Settings, set RAM to 2048 Mb and CPUs to 2. Then try starting.
This setup works for me almost 100% of the time.
If it doesn't, then remove the Guest from the Manager, and create a brand new one and do another install.
The reason I say this is because the config may have had something go wrong using install. Personally, I've only ever had that error when the Guest has not cleanly removed itself from Xen.
Because the Domain already exists, it can't be created again.
So give it a different name for the new template, then copy the root.img and private.img from the old windows template, and try booting it. if it works ,then it's the Qubes-Xen interface that has an issue and has not cleared the Domain from the system properly on shutdown.
(This also happens for other guests, not just Windows)
FYI, Win7.. Give it 2048 MB RAM assignment, NOT Balanced...
And 2 VCPUs too. that's a must. (at least to begin with)
If that doesn't work, then please enable debugging mode, and upload the logs for me to analyse please.
Then we will see where we go from there.