DCServce.exe seems to be running rsync in wrong directory

This is a brand new Windows Server 2008 machine (just provisioned in a new data center). Deltacopy was installed in the C:\program files directory, and this showed up in the Windows Application eventlog:

rsyncd: PID 2028: rsync: unable to open configuration file "deltacd.conf": No such file or directory (2)
rsyncd: PID 2028: rsync error: syntax or usage error (code 1) at /home/lapo/packaging/rsync-3.0.4-1/src/rsync-3.0.4/clientserver.c(1044) [receiver=3.0.4]

Deltacopy was then uninstalled, the service deleted using SC.exe, and then the package was reinstalled into C:\Deltacopy. Exactly the same messages in the eventlog (except for the PID of course). No log file is being written to the filesystem anywhere.

No rsync log file was found anywhere. Observation in task manager showed that DCServce.exe starts fine, runs rsync.exe, and rsync.exe then exits almost immediately. Observation with Process Explorer showed that DCServce.exe starts with a Current Directory of C:\WINDOWS. Process explorer showed that rsync was also being started with a Current Directory of C:\WINDOWS with this commandline:

rsync.exe -v --daemon --config=deltacd.conf --no-detach

The deltacd.conf configuration file is, of course, in C:\Deltacopy, not in C:\WINDOWS. But even when deltacd.conf was copied to C:\WINDOWS the same errors show up in the App eventlog.

The user account being run under is a member of the Administrators group, the Backup Operators group and has been granted the Logon as a Service right. (For policy reasons, we are ***NOT*** going to use the machine's Administrator account. It is foolhardy to recommend that.)

Latest news: If I copy deltacd.conf to C:\WINDOWS\SysWOW64, then DCServce.exe will start rsync.exe and rsync runs properly.

The question is, why is DCServc.exe started in the wrong directory? Where can I fix this?