Problems in deploying "Windows Service" using VS 2005 Setup project

[JM]

I have created simple windows service which just write message to event
log when it starts and stops. I am able to install it succesfully
using:

installutil <service_file.exe>, where <service_file.exeis the
executable of the service. (Thanks to Rohan).

But I want to install it using VS 2005 Setup project and I am unable to
do that. I have created a Solution in VS 2005 with 2 simple projects.

First project is simple Windows Service which writes an entry into
event log when it starts and when it stops. Nothing else. I have added
a projectinstaller also for that. I have used following settings for it

(developed in VS 2005 only):
1. For Service1.cs file, I have kept the default values. i.e. Name of
Service is Service1 only.
2. For ProjectInstaller.cs file, I have account = LocalSystem and
StartType = Automatic.

Second project is Setup and Deployment project with the "Primary
output" selected for the above project. It does copies the exe file of
the service under program files, BUT doesn't install the service.

I have tried all things but my setup project doesn't install the
service on my PC and I can't see the service under "Services panel" on
my PC. I am running XP professional.

Can anybody help me !!!

Regards
JM