Doug:If the log file does not exist, it means the service failed to start properly or the directory was not entered correctly.
I don't have either SPD or Image Manager installed at the moment as I went back to a clean image created with another backup app (which doesn' have SPD or IM installed), but from memory I don't believe there was a log file. The directory was almost definitely entered correctly, and the Services MMC snap-in showed the service to be Started. Also, The IM client has no problems connecting to the Service (at least it shows as being connected) so...
What are the reasons for the IM service not starting properly ?
Can it show as being Started and be connected to by the client, but still not have started properly ?