Is the logging server service running? The window title bar shows the logging service status. (Note - under Vista you need to run Printer Squirrel as administrator if you are using UAC for the server status to be displayed correctly).
If the service is shown as not installed / not running you can reinstall the service by :
Open the command prompt.
Enter CD \program files\prnlogserver <return>
Enter pssvc /iss <return>
Restart Printer Squirrel.