I had this problem almost a year ago, but finally I've written it down.

The problem I had (and sometimes other developers too) is that I don’t had administrator rights on my local PC.  So I called the people from security about this issue.  They were very helpful for this problem.  Step by step they upgrade my account with more rights and more rights (e.g. rights for the event log, rights for the registry…).  With a few of them I got a step further, but at the end I still haven’t enough rights to install the service.  The last step was to give the full administrator rights on my local PC and it’s just this step that I needed.  As following MSDN article states “Only processes with Administrator privileges are able to op handles to the Service Control Manager that can be used by the CreateService and LockServiceDatabase functions”.

So now we had a problem.  The security people came with two solutions:

• Every time we need to send the new version to them and they will install it on the server. 
• We got a second PC with administrator rights, but not connected to the network

Both solutions aren’t that great, but we choose for the second option.  Ones we had the PC, we add our accounts in the administrator group, so we could install the service with our account and we had network connection.

As you can see, in some cases administrator rights as a developer are important on your development machine.

Diederik Krols also blogged about this item, and he has a nice Bart Simpson chalk board about this, which I will include here also and maybe you need to give this picture to security people if you encountered the same problem .

BTW: Dierderik was my scrum master/technical architect there and he helped me a lot with this issue.