i remember microsoft gave a 2-programs solution (instsrv+srvany), maybe this "sc" command is replacing just one of them.
Just some days ago I tried this MS solution with no luck.
HFS did run, but it did not "read" the same permissions left there when I opened HFS normally and configured it.
It simply run with the default options, so it ""worked"" with no personalized port, settings, shares, users.
This could be understood letting the service interact with desktop (it's an option in the service properties), to see the hfs application after agreeing to see "a service message" hidden in the background: windows opens an empty environment with HFS only and you can see what happens there.
Well, gotta say I had similar problems with another network service which shares my media for the PS3. It could not read the folders it had to share: it wrote in the logs the folders did not exist. I solved adding a permission in the interested folders' properties for "SYSTEM" to allow this "user" to read the files over there.
I'd guess all the trick would work if you do the same with HFS, its VFS, its settings in the ini file, and all the shares...