Everytime you install a new Java update, a new Java folder is created on your PC which become the default JRE. However, since the new JRE did not have the serial driver file "jspwin.dll" that is installed only during installation of the TRiLOGI program, TLServer could not find the serial driver and it threws and exception and close.
That's why we always recommend installing the TRiLOGI software AFTER installing the JRE. But if you upgrade the JRE after the TRiLOGI software has been installed, and would prefer not to re-install TRiLOGI again, then what you can do is to double click on the file: "instserialio.exe" that you can find inside the folder:
C:\TRiLOGI\TL5\java lib
This will immediately install the serial driver "jspwin.dll" to the new JRE subfolder although there will not be any screen report that this has been done. Usually the library file is installed at the following folder which is where JRE will look for a 3rd party driver:
C:\Program Files\Java\j2re1.4.2_xx\lib\ext\x86
Copying of jspwin.dll to the Windows folder will also work if the JRE bothers to check Windows folder to see if the missing file can be found there. So apparently your JRE 1.5 does check Windows folder and managed to find the jspwin.dll file there and it works in your case.