I realize this post is old, but there’s no marked solution and I just wanted to throw in how I resolved this.
Error 5: Access Denied error was resolved by giving permissions to the output directory to the
NETWORK SERVICE account.
Started and then stopped error seems to be a generic message when something faulted the service. Check the Event Viewer (specifically the ‘Windows Logs > Application’) for the real error message.
In my case, it was a bad service configuration setting in app.config.