By default, the Cinegy Convert Watch Service runs as the NT AUTHORITY\NetworkService account:

Please note that the NetworkService account must have sufficient rights to write to network resources on the specified computer. If such a configuration is not available in your infrastructure, you should restart the service under a user account with enough privileges.
Make sure the user, which was used to "Log on as" for the Cinegy Convert Watch Service (Windows service) has read and write permissions for watch folder(s). For the Cinegy Archive Quality Building task, the user should have read and write permissions for Cinegy Archive shares. Right after installation the default local system account usually has no such permissions, especially for network shares.

All the settings, logs, and other data are stored in the following path: C:\ProgramData\Cinegy\Cinegy Convert\[Version number]\Watch Service. For security purposes, these settings are also stored in the Cinegy PCS, which is handy in case of failure of the machine running the Cinegy Convert Watch Service, or if you need to run several instances of the service on different machines.

Refer to the Cinegy Process Coordination Service Manual for details on running and configuring the Cinegy PCS.