I know it is a very old question, but better update it with new information.
You can install service by using sc command:
InstallService.bat:
@echo OFF
echo Stopping old service version...
net stop "[YOUR SERVICE NAME]"
echo Uninstalling old service version...
sc delete "[YOUR SERVICE NAME]"
echo Installing service...
rem DO NOT remove the space after "binpath="!
sc create "[YOUR SERVICE NAME]" binpath= "[PATH_TO_YOUR_SERVICE_EXE]" start= auto
echo Starting server complete
pause
With SC, you can do a lot more things as well: uninstalling the old service (if you already installed it before), checking if service with same name exists… even set your service to autostart.
One of many references: creating a service with sc.exe; how to pass in context parameters
I have done by both this way & InstallUtil. Personally I feel that using SC is cleaner and better for your health.