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More than likely, you need to change the properties of the Forms Runtime (ifrun60.exe) to run in Windows XP mode and run with Administrator privileges. Since Oracle Forms 6i is so old it does not work very well with the new security model of Windows 7.
Hope this helps,
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I can't tell you how much I appreciate it, I had set forms builder to compatibility mode but didn't think about the ifrun. /facepalm. Thank you so much!!!
My system configuration is just same as above. Same thing happened to me after after installing Forms patch 26. When I am pressing CTRL+R it's saying "Module built successfully". not running.