Thanks for trying Test Studio. First, I recommend upgrading to the latest internal build, which you can find in your Telerik.com account. This upgrade should resolve the permissions issue you see when attempting to restart the service.
What version of SQL are you using? Please make sure you are using SQL Server 2008 or above. Express Edition is fine. Test Studio does not work with SQL Server 2005.
If you continue to have difficulty, please enable logging
and provide the result so we can continue troubleshooting.
All the best,
the Telerik team