The problem for me was that the Windows Service installation project or part of the solution became corrupt; it did not detect the dependency correctly and therefore caused an IO problem when trying to start the Windows service.
So I basically deleted the old installation project and recreated the new one, and then when I added the primary output, it still didn't update the dependencies correctly. If I added one more primary output, the dependencies would populate, and then if I tried to delete one of the two two primary output records, VS2010 would crash, so I looked at the installation project files, then added three, and then deleted two records? !?!?!?! et voila ... no longer crashing.
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