Alternative approach is Inclusion-Exclusion.
See this article for an
introduction to Inclusion-Exclusion.
Then, see this answer for an explanation of and justification for the Inclusion-Exclusion formula.
Following the syntax in the second link:
Let $~S~$ denote the set of all of the ways that the letters in ILLINOIS can be permuted.
For $~k \in \{1,2,\cdots,7\},~$ let $~S_k~$ denote the subset of $~S~$ where there is an I in position $~k,~$ and an L in position $~(k+1).~$ Here, I am counting the positions, from the left. Note that (for example), for a random element in $~S_1,~$ there may or may not be a second occurrence of IL, after position 2.
Then, the desired computation is
$$|S| - |S_1 \cup \cdots \cup S_7|.$$
The Inclusion-Exclusion approach is much easier here, than it would seem, because:
There are shortcuts because of considerations of symmetry.
Since there are only 2 L's in ILLINOIS, any intersection of (for example) $~S_{i_1} \cap S_{i_2} \cap S_{i_3}~$ must be the empty set.
So, the final computation will be $~T_0 + T_2 - T_1,~$ where
So, the entire problem reduces to computing $~T_2.~$ This computation has a minor complication. The assumption that the first factor in the computation is $~\displaystyle \frac{\binom{7}{1} \times \binom{5}{1}}{2}~$ is wrong. In fact, this (wrong) factor isn't even an integer. The inaccuracy in this factor is illustrated by the following analysis:
If the left-most set being intersected is $~S_1,~$ then there are $~5~$ choices for the second set $~S_k.~$ These choices are $~k \in \{3,4,\cdots,7\}.~$
If the left-most set being intersected is $~S_2,~$ then there are only $~4~$ choices for the second set $~S_k.~$ These choices are $~k \in \{4,5,\cdots,7\}.$
The (hidden) complication is that if $~S_2~$ is one of the sets being intersected, then there can be no intersection that starts in position 1.
So, the left-most set being intersected can start at position $~k,~$ where $~k \in \{1,2,\cdots,5\},~$ and for each value of $~k,~$ there are $~(6 - k)~$ positions available for the right-most set being intersected.
Therefore, the first factor in the computation of $~T_2~$ will be $~\displaystyle \sum_{k=1}^5 (6 - k) = 15.$
Therefore,
$$T_2 = 15 \times 4! = 360.$$
Therefore, the final computation is
$$(T_0 + T_2) - T_1$$
$$=(3360 + 360) - 2520 = 1200.$$