Mordor doesn't run on Win95/98. It is only for UNIX and NT.
Check the syntax of the Service.exe command with 'Service.exe /?'. You should provide the path to the mordor program (c:\home\mordor\bin) so that it can be registered as your MUD service. Once that is complete you can start the MUD services with the Control Panel\Services control.
Once you have the dos window activated, minimize it to your menu bar. You cannot do anything with this dos window except hit ^C to kill the process. After you have it running you can activate a telnet session to log into the game on port 4040 (i.e. telnet localhost 4040) just as if you were logging into a normal mud. If you don't know what telnet is, then its time to learn. Go to a search page and learn about telnet. Several decent telnet clients for MS WinNT can be found at Winsite; Just search for 'telnet client'.
Check your paths. Be sure that if you are running mordor under MS WinNT that you put the mordor.exe binary in the bin/ directory. It is located in bin/NT after you unzip it, and needs to be moved to bin/ for mordor to work. Also, check to see that the log/news file exits. This is the first file shown just after login.
Due to the design of MS Windows, we cannot support certain commands yet. In order to get a listing, please use the list.exe command from within a DOS prompt. This will provide the same output as the *list command.
You can also use the Cygwin compiler if you don't have one already and don't want to pay money for one.
Don't forget to change the path and dm names in mordor.cf if you want.