Hi again,
I've been able to get it to work under the system account & allow interactive desktop. Though I don't see why it won't work when setup under a specific user account (my prefered way of doing it). I even tried playing with the service "type" (setting it to 256) in the registry trying to force it to be interactive but that didnt work either. Possably an NT quirk (or security feature ;-)
Ah well, it's working now anyways.

Thanks for the suggestions and help.

J