How to resolve "'installutil' is not recognized as an internal or external command, operable program or batch file."?

Just tried to run an application via the following:

enter image description here

I have browsed to the directory with an app WindowsService1.exe in it, then tried the command Installutil WindowsService1.exe but got the following error...

enter image description here

As VS has only been installed for a day or two I'm worried that something may be wrong with that install as it should recognise installutil.

Are there some basic diagnostics I can perform to ensure that VS Command Prompt is finding all the programs that it should ?

EDIT

If i run PATH in the command prompt I see the following:

enter image description here

Solution

This is a tiny bit off-topic but I've stopped using InstallUtil to install my services. It's is really easy to just add it to the service itself. Add a reference to System.Configuration.Install (not available in the Client Profile editions if I remember right) and then update your Main()-function in Program.cs like this.

static void Main(string[] args) {
    if (Environment.UserInteractive) {
        var parameter = string.Concat(args);
        switch (parameter) {
            case "--install":
                ManagedInstallerClass.InstallHelper(new[] { Assembly.GetExecutingAssembly().Location });
                break;
            case "--uninstall":
                ManagedInstallerClass.InstallHelper(new[] { "/u", Assembly.GetExecutingAssembly().Location });
                break;
        }
    } else {
        ServiceBase[] servicesToRun = { 
            new Service1() 
        };
        ServiceBase.Run(servicesToRun);
    }
}

Then you can just call WindowsService1.exe with the --install argument and it will install the service and you can forget about InstallUtil.exe.