>What would be some advantages of running VFP application using X-Works as an NT service? Will the VFP program automically start when the server reboots? Does running it as an NT service still cause VFP to hold system resources for which other programs need to start?

You need to run it as a service if you don't want someone to log into the server. By that, the application will run when the server boot. It acts the same as if you were running it from the desktop.