Error while starting service if the path contains spaces

The service that is installed on your computer do not start, and one of the following issues occurs:

• You receive the following error message:
  Error 193: %1 is not a valid Win32 application.
  and
• The following event is logged in the System event log for each service that does not start:

Event ID: 7000
Source: Service Control Manager
Type: Error
Description:
The ServiceName service failed to start due to the following error: %1 is not a valid Win32 application.

This issue is reported in the Article ID 812486

http://support.microsoft.com/kb/812486/en-us

It can be fixed by adding quotation marks around the complete path of the executable file for the service.