Chiming in late here, but I've been running a very simple Python service for some time now on a number of computers. It's my Raw Print Server, available at http://newcenturycomputers.net/projects/rawprintserver.html, and I have instructions on the page for installing the Windows service version. It's really quite simple to do in plain Python; the only reason to use py2exe is if you don't want to install a full Python interpreter on the computer. But since I generally do anyway, it doesn't matter to me.

-- Chris.
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