Try creating a Local User Account under which the service will run. Then grant the user account the "Logon As A Service" user right.
Hi I have a custom service that runs a batch file, I can start the service myself when logged into the computer but when I restart and the service tries to start automatically i get the following entry in the event log. Thanks for any help you can provide
Event Type: Error
Event Source: Userenv
Event Category: None
Event ID: 1053
Date: 31/08/2007
Time: 2:45:27 PM
User: NT AUTHORITY\SYSTEM
Computer: test
Description:
Windows cannot determine the user or computer name. (Access is denied. ). Group Policy processing aborted.
For more information, see Help and Support Center at http://go.microsoft.com/fwlink/events.asp.

Chowhound
Comic Vine
GameFAQs
GameSpot
Giant Bomb
TechRepublic