convert project to vs2010 and remove post build steps
fix SleepTime default value

The former default value was not following the documentation recommandations and mentionned default value. But at this time I don't understand the point of using an infinite loop on WaitForExist(SleepTime) instead of simple unique WaitForExit().
stop changing the service status manually

The ServiceBase class manage the service status changes itself, even the "pending" status while in a "OnX" event.
See the bclteam blog entry for further informations (http://blogs.msdn.com/b/bclteam/archive/2009/02/19/in-depth-how-net-managed-services-interact-with-the-servicecontrolmanager-scm-kim-hamilton.aspx)