Level 2

Windows service with specific account fails with cryptic message

Basically I have a windows service for .Net 4.5. The project has a ServiceProcessInstaller and for the Account I specified "User" so the installing person will see a dialog box and has to enter a username for that service. So far so good but as soon as the username & password is confirmed I'm getting a messagebox stating

*english (translated from the net)*
Product: something -- Error 2869. The dialog SetupError has the error style bit set, but is not an error dialog.

*german (this is what I'm getting)*
Produkt: something -- Fehler 2869. Für das Dialogfeld SetupError ist das Fehlerformatbit festgelegt, es handelt sich jedoch nicht um ein Fehlerdialogfeld.

Why is this happening? The credentials entered in the dialog box are valid, that far I can safely say. I've tried another user account on the test machine (2008 R2 server) just to be sure but it didn't work either. Running the setup as Administrator also didn't help here.
When I revert the ServiceProcessInstaller to use LocalSystem credentials it works fine and installs the service.
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