I tried versions 7.3, 7.4, and 7.5. The result was same with every version.
I don't know what had went wrong with the installation. However, after
I manually deleted and then re-created the nipalk service from the
command line everything magically started working. I don't know whether
creating the service using option "error= ignore" was the cure but I
didn't try the default option because ignoring seemed to work.
P.S. The commands I used were:
sc delete nipalk
sc create nipalk binPath= System32/drivers/nipalk.sys start= boot error= ignore group= Base DisplayName= NIPALK