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C# Console Application fails reading files on restart

Its hard to place everything in the title, but I hope I can explain this as good as I can. Basicly I made a C# Console Application that reads a certain file every now and then. The Application runs on a Virtual Machine from Google Instances. Now I have created another Console Application that is capable of managing the other application, like closing them or restarting the executables.
The Issue:
When I start the Console Application by hand (manual), it works fine and reads the files like it should. I could close and open this as much as I like and it still works. The problem is when my second Console Application tries to restart the first Console Application. The restart works fine and most functions like certain ftp connections work, but it stops reading files and gives a null back as result. There happen to be no debug errors nor does it display an error on the console.
What I want is that the second application could restart my first application without making it run where some functions appear to be blocked.
The Code I use:
string loc = File.ReadAllText(Directory.GetCurrentDirectory() + "\\"+ "location.txt");
Process p = new Process();
p.StartInfo.FileName = loc;
p.StartInfo.UseShellExecute = true;
p.Start();
I tried running it as p.StartInfo.Verb = "runas"; but this has no positive result either. Could this be an issue with the Google Virtual Machine, possible firewall settings or code related issues.
Extra
This code does work on my own laptop and so does it work after restarting.

Self-installing a service that executes with parameters

I have a console application that will optionally self-install itself as a service. This works fine, but I'd like to embed some arguments into the service startup - similar to (for example) Google's Update Service (which has the parameter /medsvc)
So let's say I'd like my service to start
MyService.exe RUN Test1
.. so that'd start up MyService.exe with the parameters RUN and Test1.
I can install the service fine, using
ManagedInstallerClass.InstallHelper(new[] {Assembly.GetExecutingAssembly().Location});
However, there's no parameters on the service. So if I try:
ManagedInstallerClass.InstallHelper(new[] {Assembly.GetExecutingAssembly().Location +" RUN Test1"});
I get a FileNotFoundException. Giving that it's a array, I thought I'd try:
ManagedInstallerClass.InstallHelper(new[] {Assembly.GetExecutingAssembly().Location,"RUN","Test1"});
.. which gives the same exception, except that it's trying to find the file RUN now.
I can't find any specific documentation on how to achieve this - does anyone know if it is possible to embed parameters in with the service executable path? As another example, here's Google's Update Service with parameters - I'd like to ultimately achieve the same.

It took me a while to find this out, I hope it's still useful to someone.
First I found out, that you are not supposed to run ManagedInstallerClass.InstallHelper according to MSDN docs:
This API supports the product infrastructure and is not intended to be
used directly from your code.
Then I found out I could just use my own ProjectInstaller (a component class I added containing a Service Installer and a Service Process Installer) to install the service like this:
ProjectInstaller projectInstaller = new ProjectInstaller();
string[] cmdline = { string.Format("/assemblypath={0} \"/myParam\"", Assembly.GetExecutingAssembly().Location) };
projectInstaller.Context = new InstallContext(null, cmdline);
System.Collections.Specialized.ListDictionary state = new System.Collections.Specialized.ListDictionary();
projectInstaller.Install(state);
Be sure to encapsulate your parameters in quotes and escape the quotes, otherwise your parameters will become part of the executable path and fail to start.
The end result will be a new service with the specified properties in your Service Installer and Service Process Installer, and a path just like in your screenshot (with the /medsvc parameter for example).

I use a console application inside my windows service. The Main method in Program.cs processes the command line args. The OnStart method starts the console application. It works great.
Windows Service to Run Constantly
HybridService Easily Switch Between Console Application and Service

Only parameters before location are being passed into the context for the installer.
Try this:
args = new[] { "/ServiceName=WinService1", Assembly.GetExecutingAssembly().Location };
ManagedInstallerClass.InstallHelper(args);
Reference from another answer: Passing Parameter Collection to Service via InstallHelper

Process.Start won't work

I am trying to launch a process from a web page's back-end code/app pool. This process will launch an App that i built myself.
For some reason, the process only works / runs when i start it from VS2013... it never works when i launch it from IIS(7.5) itself.
I am on a Windows 7 machine (both IIS host, and App location), and I've setup my web site to only be accessible via internal network.
Here's the code, followed by the config / attempts to fix the issue:
protected void btn_DoIt_Click(object sender, EventArgs e)
{
string file_text = this.txt_Urls.Text;
if (!String.IsNullOrWhiteSpace(file_text))
File.WriteAllText(ConfigurationManager.AppSettings["filePath"], file_text);
ProcessStartInfo inf = new ProcessStartInfo();
SecureString ss = GetSecureString("SomePassword");
inf.FileName = #"........\bin\Release\SomeExecutable.exe";
inf.Arguments = ConfigurationManager.AppSettings["filePath"];
inf.UserName = "SomeUserName";
inf.Password = ss;
inf.UseShellExecute = false;
//launch desktop app, but don't close it in case we want to see the results!
try
{
Process.Start(inf);
}
catch(Exception ex)
{
this.txt_Urls.Text = ex.Message;
}
this.txt_Urls.Enabled = false;
this.btn_DoIt.Enabled = false;
this.txt_Urls.Text = "Entries received and process started. Check local machine for status update, or use refresh below.";
}
Here are the things I've tried to resolve the issue:
Made sure the executing assembly was built with AnyCPU instead of
x86
Ensured that the AppPool that runs the app, also runs under the same account (SomeUsername) as the ProcessStartInfo specified.
Ensured that the specific user account has full access to the executable's folder.
Ensured that IIS_USR has full access to the executable's folder.
Restarted both the app pool and IIS itself many times over implementing these fixes
I am now at a loss as to why this simply will not launch the app... when i first looked into the event log, i saw that the app would die immediately with code 1000:KERNELBASE.dll, which got me on the AnyCPU config instead of X86 fix... that fixed the event log entries but the app still doesn't start (nothing comes up in task manager), and i get no errors in the event log...
if someone could help me fix this problem i would really appreciate it. This would allow me to perform specific tasks on my main computer from any device on my network (phone, tablet, laptop, etc etc) without having to be in front of my main PC...
UPDATE
The comment to my OP, and ultimate answer from #Bradley Uffner actually nailed the problem on the head: My "app" is actually a desktop application with a UI, and in order to run that application, IIS would need to be able to get access to the desktop and the UI, just like if it were a person sitting down in front of the PC. This of course is not the case since IIS is running only as a service account and it makes sense that it shouldn't be launching UI programs in the background. Also see his answer for one way of getting around this.

Your best bet might be to try writing this as 2 parts. A web site that posts commands to a text file (or database, or some other persistent storage), and a desktop application that periodically polls that file (database, etc) for changes and executes those commands. You could write out the entire command line, including exe path command arguments, and switches.
This is the only way I can really think of to allow a service application like IIS to execute applications that require a desktop context with a logged in user.

You should assign a technical user with enough high priviliges to the running application pool. By default the application pool is running with ApplicationPoolIdentity identy which has a very low priviliges.

Service not running application

I am creating a service which runs an .exe file on Windows 7. It must be done as a service due to complex requirements, so a console application is not possible.
I have written the following code, which works perfectly in a console application, however when placed in the service, the executable is never run.
ProcessStartInfo startInfo = new ProcessStartInfo();
try
{
startInfo.WorkingDirectory = "C:\\Folder";
startInfo.FileName = "MyApp.exe";
Process myProcess = Process.Start(startInfo);
}
catch (Exception ex)
{
using (StreamWriter writer = File.AppendText(path))
{
writer.WriteLine(ex.Message);
}
}
}
No errors are being thrown, but the application is simply not starting.
I have read that services cannot run an executable in a straightforward manner, and have modified the above code based on suggestions, however it does not work.
EDIT: I have configured the service manually as follows:

This question has been the cause of great frustration, and I have finally solved my problem. Yes, I have managed to make a service load a GUI application, even though everyone says that it is impossible. There is a warning though - the "fix" can be considered as exploiting a loophole in Windows, as the code which I used basically passes the Vista and Windows 7 UAC. Essentially, the application is always executed with full rights and bypasses the UAC.
If anyone has this same problem, what you need to do is iterate through a list of logged in users on the PC, and choose to open the UI application in this session (which has the user's desktop), rather than in session 0 where the service is supposed to be running (and which does not have a desktop).
For some people, this might not be a solution as it is not secure. But in my case, security is not a main concern, and I just needed it to work (had to be a service by force).
Hope this helps anyone who has the same problem that I had.

System.Diagnostics.Process.Start() cannot start process when called from Windows service

I am trying to start an external process from a .NET Windows service. In the past I have used the Process.Start() overload that takes the executable path and a command line string. This works. But now I would like to start the process and have it run in the context of a particular user. So I call this version of Start()
public static Process Start(
string fileName,
string userName,
SecureString password,
string domain)
However, when I call the method, the application I am trying to run generates an unhandled exception:
The application failed to initialize properly (0xc0000142). Click on OK to terminate the application.
I have tried to start different applications and they all generate the same exception. I have run the code outside of the Windows service and the application starts correctly.
So is there a way to get this to work in a Windows service?

Maybe the user has to have, "logon as a service" security right. This is done with the "local security policy" application. And/or "logon as a batch job".

This is very similar to this question here. The answer is usually due to security issues with the desktop and window station in which the process is being run. See this article for an explanation and some sample code.

This is just a shot in the dark, but perhaps you can try to run the Windows Service in Interactive mode. If that works, though, this can't be done in Windows Vista (because of Session 0 Isolation).

Use Filemon and see if it is trying to open a config file and not finding it. I once had this error due to a malformed config.