win32/service problems on Server 2003

I'm trying to get a basic service running on my development box. For
testing purposes, I'm using the demo_daemon.rb and demo_daemon_ctl.rb
that come as working examples with the gem. On my WinXP machine (with
the Ruby 1-click install) everything works as expected. However, on my
dev box (with InstantRails) I just modified the scripts a bit (added the
require for my environment) and it DOES create the service, but I cannot
start it. I looked in the services GUI in windows and I could not find
my service - however, after more tests, I realized that the program IS
creating the service, but it shows up as a bunch of weird characters
like 敄潭ЀɳgကԀҰɳҰɳ and stuff, hence the reason why the service can't

Does anybody have an idea as to why this kind of behavior is occurring?

Any and all help is appreciated!
- Jeff Miller