Microsoft has changed services under Vista, 7, and 2008 to no longer allow for interactive services. You need to change the service to stop asking to be interactive:
- Open Services.msc
- find the listed service
- Select Properties
- Select Log On tab
- Clear the checkbox for "Allow service to interact with desktop"
- Click Apply, OK, and restart the service.
No more error. See T756339
for more details.
Typically, services are console applications that are designed to run unattended without a graphical user interface (GUI). However, some services may require occasional interaction with a user - for example it may open a dialog box requesting some action from the user. This type of service is an "interactive service".
As the event description indicates, this particular service is an interactive one, however, the computer has its policies set as to not allow interactive services. The service may still work fine (if the interaction with the user is not a critical component) but not necessarily.