In the 3.7.X release of PETSc, they changed the syntax for PetscGetOptionsString. If you change line 312 in pdomain.F to:
call PetscOptionsGetString(PETSC_NULL_OBJECT,PETSC_NULL_CHARACTER,
& '-pc_type',optstr,chk,ierr)
it should work. But beware that they are other changes need to get parfeap to work with 3.7.4. You get all the changes you will need to look through the Petsc release notes. I have a working version with 3.7.3, I will try to grep the changes and post them.