Unable to Initialize Engine License from a Service

[MelodyMeinhardt]

Using ArcGIS 10 SP1, in a .NET project using ArcObjects in a winforms application we are able to bind to ProductCode.Engine and initialize the license without a problem. 

Using the same licensing code accessed from a service the 'If RuntimeManager.Bind(ProductCode.Engine)' returns true.  However, the _aoLicenseInitializer.Initialize returns a license status of esriLicenseStatus.esriLicenseNotLicensed.

Any ideas on how to troubleshoot this?  Thank you!

[RichardWatson]

Which account is your service running as?

My guess is that if you configure the service to run using the account you use interactively then it will work.

Services typically run using accounts such as System.  In particular, the System account is very powerful on the local machine but does not have network privileges.

It it isn't a permission issue then my other guess is that perhaps some HKCU registry key is being used in order to determine the license server.  That doesn't sound right but I am just brainstorming.

Another issue is whether or not it is legal to use Engine from a service but I am not the police and certainly do not speak for ESRI.