Tomcat uses the Apache Commons ProcRun Daemon to run as a Windows service.
When editing the Java options through the GUI (typically by running [tomcat]\bin\Tomcat7w.exe) each command line option needs to be on it's own line without leading or trailing spaces. Because of the size of the text area you're given to edit the Java options, its easy to paste in several options and not notice that each option isn't separated by newlines. I've done this a few times.
In your case, the clue is that the Java error shows a property which chould be a port and is actually a port, plus other options. The kind of error behavior you get though will completely depend on the validation present on the first option on a given line.
As well as editing the options in the dialog, you can also get to them in the registry at the following locations:
HKEY_LOCAL_MACHINE\SOFTWARE\Wow6432Node\Apache Software Foundation\Procrun 2.0\Tomcat7\Parameters\Java\Options
(on a 64 bit Windows) or
HKEY_LOCAL_MACHINE\SOFTWARE\Apache Software Foundation\Procrun 2.0\Tomcat7\Parameters\Java\Options
(on 32-bit)