In Teamwork server up to v17.0.2 SP3 and v17.0.3 SP1, there are issues with adding/starting the service using Java versions 1.7.0_21 and 1.6.0_45.
This issue is caused by Java update
The solution is to use an earlier Java version. The list of recommended Java versions can be found at http://www.nomagic.com/support/jvm-list.html
Problem will be fixed in the next teamwork server version and service pack.