I have the same issue too....
SLAM attempted to locate its config at this location and failed to do so: C:\inetpub\wwwroot\wss\VirtualDirectories\31524\slam.config
When I copy paste the path in the browser manually, the file exists. I have checked the permissions for the file as well, and Everyone has read access to it.
Did you get a solution for that Paul? If yes , pls share that ...
I even tried by adding an appsetting ""Slam.ConfigurationManager.Config"" in the web.config file .... but in vain. I still get the same error.