FileSystemWatcher in a Service - XP machine works, W2K sever does

[AlanF]

I have looked over most of the FSW questions in the forum and this one seems
like a unique twist. Here it is.

In a nutshell, when a .NET service is running on my machine (XP), the fsw
file created event fires just fine and everything processes correctly. When
we move the same service to a W2K server box (server is running SP4 - I saw
the other post on this), the fsw file created event does not fire when we
create a file in the same directory the service is watching on the same file
server!

Supporting info:
- the service is set to run under an account that has access to the target
directory (on another network server) where the file is being created.
- We are using standard notation for the directory the fsw needs to monitor
(ie "\\machinename\shared\directory\")
- the service runs under an account that has local admin rights in both
environments
- the service writes to the app event log during start on both boxes that
indicates it is looking at the correct directory and file type (the fsw
filter is set for *.xls)
- we have made sure that the file does not exist on the target directory -
ie we are not trying to overlay an existing file.
-We have determined that the DFS environment is not causing an issue.

We think it may be something in the config of the W2K server running the
service that is preventing the file create notification messages from the
file server where the file is being created from getting thru to the fsw.

Any help is greatly appreciated.
--
Thank You. Alan.