watchDirectory 4.9.5 running on windows 2012 server. Task to copy files from one local directory to another local directory works fine when run manually with my user account. When run as network service the service starts but the task does not run. Also if I set to run manually and keep running after I logoff, the task still stops when I log off. These are functions only available of Pro version which is what is running

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When a task runs as a Windows Service, Windows will typically limit it to "do things" on the local computer. So, copying files from C:\Source to C:\Target will work fine.
If you want the task to have access to network resources, you will need to change the user-account of the Windows Service.

This is explained in this blogpost:
http://blog-en.gdpsoftware.com/2010/04/watchdirectory-tasks-as-windows-service.html

This task, and all of our tasks run on local drives only so the local system account and the other account we tested to start the service should have full rights. Why are there no messages in the history file for the task when started as a service?

Can you enable "debug" for ONE of those tasks? Run it for a while, stop it and create a backup for me to look at. Email it to me - gert@gdpsoftware.com

This is explained in detail here: http://blog-en.gdpsoftware.com/2010/06/send-task-backup-to-support.html