This cover everything needed to get a windows service up and running.

Step 1 : Add code to the OnStart, OnStop, OnContinue and OnPause (or, write your application)
Step 2 : Go to the designer of the Web Service. Right-Click, Add Installer.
Step 3 : Go to the Bin directory
Step 4 : installutil nameofyourapp.exe (make sure you are running your command-line with Visual Studio environment path registred). Your application is installed.

Have fun!