Julianna,

I created a directory under ADSM called "svc" and copied all the files the
ADSM Scheduler Service needs to run, including a copy of DSM.OPT, to that
directory.  My Include/Exclude list works fine.  Here is the details of the
procedure:

 Install the ADSM Scheduling Service.
    Create a new folder in C:\OPT\ADSM called  SCH
    Copy the following files to C:\OPT\ADSM\SCH\
        Adsm32.dll
        Adsmv3.dll
        Blkhook.dll
        Dscameng.txt
        dsm.opt
        Dsmcsvc.exe
        Dsmcsvc.exe
        Dsmutil.dll