OK, so you have a software issue and not a hardware issue (Device Manager sees it and Vuescan works it).
I'm assuming that you're new to the hurdles of Windows 7.
1) Turn off UAC. Go back to Control Panel\All Control Panel Items\User Accounts and click Change User Account Control Settings. When UAC control comes up slide the slider all the way down to Never Notify.
http://windows.microsoft.com/en-US/windows7/Turn-User-Account-Control-on-or-off
2) Find the base program that you're trying to launch (probably in C:\Program Files (x86)\Epson) and right click it. Click properties. Choose the Compatibility tab and set the program to Windows XP compatibility. While you're at it you can have it "run as admin". A last resort may be to also disable Visual Themes and Desktop Composition, but you shouldn't need to do that.
Try the program.
If you still can't get it, and you still have some patience left, you can run the installer again as admin with XP compatibility mode. If you do, turn off all security software such as your firewall and antivirus programs
just for the time it takes to install the program again. After install turn the security programs back on again. Security programs have been known to hang an install just enough for the installer to skip a step.
Vuescan works with the scanner, so you should be able to get this going. If you leave Vuescan installed (or active) does that get the program going or is it still stuck?
To get my HP scanner working I needed to contact HP and they had me install a newer version of the program designed for a newer scanner. It can be a headache, hopefully it'll be worth it.