First question:
There is a program included with the Windows 2000 Resource
Kit called "Srvinstw.exe." This allows you to install an
application as a service. There are other ways but they
are not supported by Microsoft.
or
243486 How to Run a Batch File Before Logging on to Your Computer
http://support.microsoft.com/?id=243486Second Question:
I cannot answer that question for you. And please I don't know if that story is true or not but it's been heard enough times don't try to add pity to a case. It won't get you anywhere but nowhere.