Thank, I will look into this. Meanwhile, I found more info: Changing Callback_Start as follows allows it to run, however the resume/contine callback function does not work and does not benefit from a similar change:

sub Callback_Start {
    my($Event, $Context) = @_;

    print $fh "Starting\n";

print $fh "DEBUG Setting Context\n";
    $Context->{last_state} = SERVICE_RUNNING;
print $fh "DEBUG Setting State\n";
    Win32::Daemon::State( SERVICE_RUNNING );
print $fh "DEBUG Setting State again\n";
    Win32::Daemon::State( SERVICE_RUNNING );
}
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