I regret to say that I have tried to use Windows Services for Unix (starting with 3.0, through 3.1 and now 3.5). It is inferior to Cygwin. The emacs port is particularly bad. It doesn't do filename completion properly and often crashes.
I think SFU is probably a dead end. Microsoft isn't really supporting it any longer. I recommend Cygwin. There's also a "light" version of Cygwin, "Msys" (see http://www.mingw.org/), which looks good and integrates pretty well with NTEmacs.
