At the moment, the way our InstallScript engine checks the state of a service requires that the user has elevated privileges. With the changes in the way that Vista manages Administrator rights, we receive improper failure cases for attempting to locate or utilize a service.
The best workarounds for this issue are to either set the setup.exe's Required Execution Level to as Administrator or only check for services in Deferred in system context custom actions which also means that move the CA from 'Install UI' to 'Install Execute' and executed it "After InstallInitialize", which won't have this issue.