Setting up windows 7 slave 32 bit to run as windows service fails with:
Waiting for the service to become ready
Checking if Java exists
java -version returned 1.7.0.
Copying jenkins-slave.xml
Copying slave.jar
Starting the service
Connecting to port 64,323
ERROR: Unexpected error in launching a slave. This is probably a bug in Jenkins
java.net.ConnectException: Connection timed out
at java.net.PlainSocketImpl.socketConnect(Native Method)
at java.net.AbstractPlainSocketImpl.doConnect(AbstractPlainSocketImpl.java:327)
at java.net.AbstractPlainSocketImpl.connectToAddress(AbstractPlainSocketImpl.java:193)
at java.net.AbstractPlainSocketImpl.connect(AbstractPlainSocketImpl.java:180)
at java.net.SocksSocketImpl.connect(SocksSocketImpl.java:384)
at java.net.Socket.connect(Socket.java:546)
at java.net.Socket.connect(Socket.java:495)
at java.net.Socket.<init>(Socket.java:392)
at java.net.Socket.<init>(Socket.java:206)
at hudson.os.windows.ManagedWindowsServiceLauncher.launch(ManagedWindowsServiceLauncher.java:362)
at hudson.slaves.SlaveComputer$1.call(SlaveComputer.java:230)
at java.util.concurrent.FutureTask$Sync.innerRun(FutureTask.java:334)
at java.util.concurrent.FutureTask.run(FutureTask.java:166)
at java.util.concurrent.ThreadPoolExecutor.runWorker(ThreadPoolExecutor.java:1110)
at java.util.concurrent.ThreadPoolExecutor$Worker.run(ThreadPoolExecutor.java:603)
at java.lang.Thread.run(Thread.java:636)

Same set is ok when running as web start service..