SOLVED!!
Arthur, your a legend, worked perfectly. I was searching in the wiki for Service related problems but couldn't find anything. Thank you very much.

I have installed Advanced TCP/IP Data Logger on a Windows Server 2008 R2 and have everything working with the application running. I am reading from a Volktek Serial to Ethernet converter running as a terminal server and writing to a SQL Server.

When i try and run the application as a service it fails unless I run the service as a domain admin. I have tried to run the service as a local Admin, Domain account with local admin privileges, Local Service and Network Service. Each time i try and start the service using any of these accounts i receive the following error,

Error 1067: The process terminated unexpectedly

See below the error in Event viewer and there is nothing meaningful in the aipdlog.log file.

I have disabled UAC but this makes no difference. I cannot obviously run the service as a domain admin.

Has any one got any suggestions on how I might resolve?

/******EVENT VIEWER RESULT****************/
Faulting application name: aipdlog.exe, version: 4.1.1.220, time stamp: 0x2a425e19
Faulting module name: aipdlog.exe, version: 4.1.1.220, time stamp: 0x2a425e19
Exception code: 0xc0000005
Fault offset: 0x00295d22
Faulting process id: 0x67c
Faulting application start time: 0x01cf4260e466ce08
Faulting application path: C:\PROGRA~2\ADVANC~1\aipdlog.exe
Faulting module path: C:\PROGRA~2\ADVANC~1\aipdlog.exe
Report Id: 22513d14-ae54-11e3-bfa8-005056a14528