URGENT! visual studio express 2008 C# filesystemwatcher - not triggering

I have a Window Service with a System.Net.FileSystemWatcher configured to watch a particular folder.

When the service starts, it creates a text file (basically saying the service started).  When I do anything in the folder being watched, it's supposed to copy the affected file to another location and create a separate text file (just debugging at this point).

The problem is, nothing happens when the watched directory is changed - files created, deleted, modified - none of them seem to trigger the events.

Here is the initialize code:
        private void InitializeComponent()
        {
            this.FSWatcherTest = new System.IO.FileSystemWatcher();
            ((System.ComponentModel.ISupportInitialize)(this.FSWatcherTest)).BeginInit();
            //
            // FSWatcherTest
            //
            this.FSWatcherTest.EnableRaisingEvents = true;
            this.FSWatcherTest.IncludeSubdirectories = true;
            //<dk> - note: only raise event if one of the notifiers is
            //triggered, e.g. size or lastwrite changes - do not need filename. </dk>
            this.FSWatcherTest.NotifyFilter = ((System.IO.NotifyFilters)((((((((System.IO.NotifyFilters.FileName | System.IO.NotifyFilters.DirectoryName)
                        | System.IO.NotifyFilters.Attributes)
                        | System.IO.NotifyFilters.Size)
                        | System.IO.NotifyFilters.LastWrite)
                        | System.IO.NotifyFilters.LastAccess)
                        | System.IO.NotifyFilters.CreationTime)
                        | System.IO.NotifyFilters.Security)));

            // <dk> filter .xml files only
            this.FSWatcherTest.Filter = "*.*";
            this.FSWatcherTest.Path = "C:\\inetpub\\wwwroot\\OutDir\\";
            // </dk>
            //
            // Service1
            //
            this.ServiceName = "TestCSWinWatcherService";
            ((System.ComponentModel.ISupportInitialize)(this.FSWatcherTest)).EndInit();

Here is code for the events:

        private System.IO.FileSystemWatcher FSWatcherTest;

        /* DEFINE WATCHER EVENTS... */

        /// <summary>
        /// Event occurs when the contents of a File or Directory is changed
        /// </summary>
        private void FSWatcherTest_Changed(object sender, System.IO.FileSystemEventArgs e)
        {
            //code here for newly changed file or directory

            FileStream fs = new FileStream(@"c:\inetpub\wwwroot\xml\changed.txt",
FileMode.OpenOrCreate, FileAccess.Write);
            StreamWriter m_streamWriter = new StreamWriter(fs);
            m_streamWriter.BaseStream.Seek(0, SeekOrigin.End);
            m_streamWriter.WriteLine("changed \n");
            m_streamWriter.Flush();
            m_streamWriter.Close();

            m_streamWriter = null;
            fs = null;

            System.IO.File.Copy(e.FullPath, "C:\\inetpub\\wwwroot\\xml" + e.Name);
         
       
        }

        /// <summary>
        /// Event occurs when the a File or Directory is created
        /// </summary>
        private void FSWatcherTest_Created(object sender, System.IO.FileSystemEventArgs e)
        {
            //code here for newly created file or directory
            // <dk> read the file

            FileStream fs = new FileStream(@"c:\inetpub\wwwroot\xml\created.txt",
FileMode.OpenOrCreate, FileAccess.Write);
            StreamWriter m_streamWriter = new StreamWriter(fs);
            m_streamWriter.BaseStream.Seek(0, SeekOrigin.End);
            m_streamWriter.WriteLine("created \n");
            m_streamWriter.Flush();
            m_streamWriter.Close();
           
            m_streamWriter = null;
            fs = null;


            System.IO.File.Copy(e.FullPath, "C:\\inetpub\\wwwroot\\xml" + e.Name);
         
           
        }

        /// <summary>
        /// Event occurs when the a File or Directory is deleted
        /// </summary>
        private void FSWatcherTest_Deleted(object sender, System.IO.FileSystemEventArgs e)
        {
            //code here for newly deleted file or directory            
        }

        /// <summary>
        /// Event occurs when the a File or Directory is renamed
        /// </summary>
        private void FSWatcherTest_Renamed(object sender, System.IO.RenamedEventArgs e)
        {
            //code here for newly renamed file or directory
        }
    }
}