I only had time to test in windows XP. This is what I found (so far successful)
I setup my ini file like this using XYNT ( http://www.codeproject.com/KB/system/xyntservice.aspx
ServiceName = XYNTService
CheckProcessSeconds = 30
CommandLine = c:\eventghost\eventghost.exe -f c:\eventghost\test.xml
UserInterface = Yes
Restart = Yes
UserName = User1
Password = Password1
What I did:
I launched it just plain, and EG was loaded but nothing seemed to work. So I added my user name and password (so it would launch in that instance) and that worked.
EG launches, but nothing appears on desktop despite Userinterface and Interact with desktop enabled. HOWEVER, the webserver rendered the page and events were sent back and forth. I then logged off... and low and behold it still worked. I logged back in and EG never skipped a beat.
I still need to test this in Windows 7, but I think this resolves this issue. Best part was it was brainless to install and completely opensouce. What its doing is running the process in a user space, but launched via the session defined as user. Maybe we can open this app up and port it into EG itself... just an idea!