I created a simple http server in Node.js.
I wanted to make it run permanently on my Windows 2008 machine, so that, if the computer reboots, it automatically restarts.>
As I recall, the Service runtime environment isn't the same as running something under the command shell. In particular, Services are required to respond to messages from the system to indicate their running status, as you've seen :-)
This must be a solved problem, though...
Sure enough: https://npmjs.org/package/windows-service
windows-service
Run Node.JS programs as native Windows Services.
npm install windows-service