The Dude installation not creating service

Hi,
I’m having a problem installing The Dude on a server running Windows Server 2008 R2 SP1.

The version of The Dude is 3.6

The Dude installs correctly but does not create a service.

I have disabled UAC and have run the installer as both the local administrator and also as a Domain Administrator.
I have used the Run As Administrator when executing the installer.

Every time I run the installation it completes without error.
The Dude runs fine in “All the time” mode but immediately fails when I choose to run it as a service.

I have changed the default installation folder to C:\Program Files\Dude\ as suggested by one person on the user forum but this has not fixed the issue.

I have checked the installation log file but it doesn’t appear to show any issues.

Does anybody know what it is that I might be doing wrong?
Is there a way that I can turn on a higher level of logging for the installation process?

Thanks in advance,
Philip