In short here's the scenario and main problem.
a. Proxy admin server start - no problem
b. Create a new manage server (no proxying - just testing it) using different port. It just won't start. No logs produced either.
Here's the server.xml for the new manage server.
<?xml version="1.0" encoding="UTF-8"?>
Copyright (c) 2003 Sun Microsystems, Inc. All rights reserved.
Use is subject to license terms.
<!DOCTYPE SERVER PUBLIC "-//Sun Microsystems Inc.//DTD Sun Java System Web Proxy Server 4.0//EN" "file:///E:/Sun/ProxyServer40/bin/proxy/dtds/sun-web-proxy-server_4_0.dtd">