Assumption: "Logoff your system" means you logged out of Windows.
How did you create the service? The logon tab for the service should have "Local System Account" selected.
Why don't you try removing the service and start over with these instructions:
to delete your service:
sc delete the-service-name
here is how I create a service:
sc create service-name binPath= "C:\as\lib\appservService.exe \"C:\as\bin\asadmin.bat start-domain domain-name\" \"C:\as\bin\asadmin.bat stop-domain %2\"" start= auto DisplayName= service-name
-- Note how I don't need a password file. I just do the steps below before creating the service and I never need to give the password again. (I use the developer version).
1) asadmin start-domain
2) asadmin login
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