If you're going to access a file system on another computer, your service has to be installed with a user account that exists on the remote system. The default user for a service is "Local System" or something like that. So, you need to have (or create a new) user account with appropriate permissions on the remote system, and then install your service with those account credentials on your local box. Put a try/catch block around your System.IO calls, and you'll see exactly why they're failing.
"Why don't you tie a kerosene-soaked rag around your ankles so the ants won't climb up and eat your candy ass..." - Dale Earnhardt, 1997
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"...the staggering layers of obscenity in your statement make it a work of art on so many levels." - Jason Jystad, 10/26/2001