Creating an ArcMap Image service returns an error

Description

While creating an ArcMap Image service, the following error may occur:

"Error when trying to administer Service."

The ImageServerArcMap log file, if set to verbose logging may include the following:

ADD_SERVICE: ss_test
error = 0x80030002, file = G:\SourceCode\Server_Components\ArcMapServer\Src\AMService.cpp, line = 212, compiled = Tue Mar 5 09:32:35 2002
Service ss_test can not be created.
Total Request Time : 1.000000s
End Request

Cause

The server output property is invalid. For example, when creating the map service, if the correct path is C:\ArcIMS\Output, but an incorrect path is used, such as "C:\Output", the error will occur.

Solution or Workaround

Warning:
This setting is used by the Spatial Server and so must be correct for all machines running the ArcIMS Spatial Server. This may be a UNC path such as \\<ServerName>\<Share>\ArcIMS\Output