Have a look in the event log and see if there is any errors in there relating to the hservice or IIS. Check and make sure IIS is running correctly. SP1 in Windows has a feature that will stop IIS running unless you allow it (DEP), make sure this is disabled or allows rapport/IIS.
Also is this the only thing using IIS? Make sure only Rapport is using IIS on that server. I will send you a hotfix to test too as you are a member,
Cheers,
-TT