The numbers have 8 places (some of which might be zero), and there are 7 units of value to go into them. (Each place can have at most 9 units, but that's automatic since there's only 7 units total.) So it's a stars and bars problem with 7 stars and 7 bars, making $\binom{14}{7} = 3432$ such numbers.
(For example, |**|*|***|||*|
would correspond to the number 02130010.)
[edited: 8 places, not 7]
Let $S_{a, b, c, d, e} $ be the number of solutions with $x_1\ge a$, $x_2 \ge b$, $x_3\ge c$, $x_4\ge d$ and $x_5\ge e$.
The equation can be written as
$$(x_1-a)+(x_2-b)+(x_3-c)+(x_4-d)+(x_5-e)=21-a-b-c-d-e$$
So we have
$$S_{a, b, c, d, e} =\binom{21-a-b-c-d-e+4}{4}$$
if $a+b+c+d +e\le21$ and is $0$ otherwise.
The answer to this question is
$$S_{0, 1,15,0,0}-S_{4,1,15,0,0}-S_{0,4,15,0,0}+S_{4,4,15,0,0}=\binom{9}{4}-\binom{5}{4}-\binom{6}{4}+0=106$$
Best Answer
I also got 35. Did it the old fashioned way so there may be an error. Note we can't pick any digit to be 5 either because there would be 4 more digits to pick each of which must be at least 1 so the total sum becomes > 8.
1) Pick the first digit to be 4 then all other digits must be 1
4 1 1 1 1
there are 5 positions where 4 can go so there are 5 of these numbers.
2) Pick the first digit to be 3 then we cannot pick another 3 because we would go over. Pick the second digit 2
3 2
now , all remaining digits must be 1
3 2 1 1 1
keeping 3 fixed , there are four positions for 2. Since there are five positions for 3 we use the multiplication principle to get 5×4 = 20 of these numbers.
3) Pick the first digit to be 2. There is no need to pick 3 as any digit because that has been done already above at 2). Pick the second digit to be 2
2 2
the sum is already 4. now there are three digits remaining to pick and one of them must be 2
2 2 2
we are forced to pick 1 for the remaining digits
2 2 2 1 1
let's work with the 1's switching their position. We can use the same argument as before to get 5×4 = 20 but now we divide by two because the digits switching position are equal. There are 10 of these numbers.
There is no need to pick the first digit to be 1 because all possible configurations have been counted already. We are done counting.
5 + 20 + 10 = 35