As per the Microsoft Dynamics GP Service Host account, I bring up what the Web Services installation guide mentions:
The Microsoft Dynamics GP Service Host is the Windows service that hosts the
various services that are part of Web Services for Microsoft Dynamics GP. The
Microsoft Dynamics GP Service Host service must run under a user account. To
make the service more secure, a specific “service user account” should be created
and used only for this purpose.
Which type of user (local or domain) you need to create depends on the
configuration you plan to use for Web Services for Microsoft Dynamics GP.
• If you will be installing the web services on the same computer that is running
the SQL Server and managing data for Microsoft Dynamics GP, you can create a
local user account.
• If you will be installing the web services on a different computer than the one
running SQL Server and managing data for Microsoft Dynamics GP, you must
create a domain account.
• If you are using mail notifications for Microsoft Dynamics GP Workflow, you
must use a domain account that has privileges to access Active Directory.
For improved security, this new user should be given minimal privileges.
When you install Web Services for Microsoft Dynamics GP, you will need to supply
the credentials for this new account.
The account running this service normally doesn't need to be given admin permissions on the server, though there are exceptions depending on the environment.
A good test is to start out by having THE domain administrator, i.e. Domain\Administrator, run this service and verify that it remains started/running.
--if the service works fine, then you know the other accounts were lacking some type of permissions needed to run this service.
--if the service continues to stop or not work, even with THE domain admin account running it, then you know you have a bigger problem then just the account running this service.
Either way, this will at least allow you to focus on a specific area for troubleshooting.
Also, as mentioned above, look in the Event Viewer logs as well, specifically the 'Application' log. If you see an error or warning, check to see what it mentions if specific to Web Services and let us know. For example, if you see something like this: “WMI provider was not registered”, it usually means there is a permissions issue with the account running the service.
We frequently see this issue more with the eConnect service, then this Web Services service. Looking through our case history, I didn't find much more than what is mentioned here, though it isn't something we see much.
Thanks,