Problem running mongrel on win32

mongrel fails to start with the error below on my win32 box (needs
win32/service). But I do have the win32gem install win32-service sits
there forever (hours) while "building native extensions" which I
abovrt. The shared object for win32-service (service-0.5.2-vc6.so)
is available though, so presumably I don't need the win32-service gem?

I have seen a recent thread by Jeff Cohen and Daniel Berger with a
similar (identical) issue. But I didn't really see a resolution of
this. Supposedly I shouldn't need the win32-service gem because I
have the shared object. If I do need the gem, I have a similar problem
building the gem because my C compiler (latest Visual Studio) can't
compile the gem (service.c fails with "bad program database").

Thanks in advance for any ideas.

- Adam

"C:\rails\rails_apps\sms>mongrel_rails start -d
C:/rails/ruby/lib/ruby/site_ruby/1.8/rubygems/custom_require.rb:27:in
`gem_origi
nal_require': no such file to load -- win32/service (LoadError)
        from
C:/rails/ruby/lib/ruby/site_ruby/1.8/rubygems/custom_require.rb:27:
in `require'
        from
C:/rails/ruby/lib/ruby/gems/1.8/gems/mongrel_service-0.1/lib/mongre
l_service/init.rb:5
        from
C:/rails/ruby/lib/ruby/site_ruby/1.8/rubygems/custom_require.rb:27:
in `gem_original_require'
        from
C:/rails/ruby/lib/ruby/site_ruby/1.8/rubygems/custom_require.rb:27:
in `require'
        from
C:/rails/ruby/lib/ruby/gems/1.8/gems/gem_plugin-0.2.1/lib/gem_plugi
n.rb:130:in `load'
        from
C:/rails/ruby/lib/ruby/site_ruby/1.8/rubygems/source_index.rb:142:i
n `each'
        from
C:/rails/ruby/lib/ruby/site_ruby/1.8/rubygems/source_index.rb:142:i
n `each'
        from
C:/rails/ruby/lib/ruby/gems/1.8/gems/gem_plugin-0.2.1/lib/gem_plugi
n.rb:112:in `load'
        from
C:/rails/ruby/lib/ruby/gems/1.8/gems/mongrel-0.3.12.4-mswin32/bin/m
ongrel_rails:191
        from C:/rails/ruby/bin/mongrel_rails:18:in `load'
        from C:/rails/ruby/bin/mongrel_rails:18