> What are the advantage/disadvantages of running it as an application
> vs. service mode? I had never heard of that until now.

There's been a lot of discussion about this. Eg. here:
http://forums.slimdevices.com/showthread.php?t=39641)

Pro service: will start when system starts, no login required

Pro application: sees your system exactly as you see it, including mapped 
network drives and your registry keys (needed for iTunes integration).

-- 

Michael
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