When you are creating a service for your application/process server in windows using the psadmin tool.  If the user account you are using does not have local administrator access on Windows 2008, it will generate the error:

openSCManager failed access is denied (0X5)

You will need to run the “Command Prompt” link with the option “Run as administrator”. You should be able to right click on the menu item in the start menu and select this option. Once at the command line change to the appserv directory and run psadmin, and then install your windows service.