Tim,

> Is it possible to interact with Squeak running as a service?

As I said in my previous post you cannot interact (graphically) with Squeak
when it's running as a service. While this may be theoretically possible it
would also imply that everyone who is logged on could do whatever she wants
with Squeak and that is most certainly not what you want. For applying
updates/patches etc. I'd rather suggest that you stop the service, then run
the image interactively, save it, and start the service again.

Cheers,
  - Andreas