Kris,
No, it should not stop the services. It will prevent the job from outputting, but shouldn't stop the services. I've forced a few errors to occur in Image(tried an impossible to rip form and tried emailing to invalid emails) and they did not stop any of the services.
Are you using version 7.1.3? This is the version that I've used, the latest one. Also, what version of Windows are you using, and is it 32 or 64 bits? Are you running on a VM or Terminal Server?
And did you make sure that it's only Image that is causing the problem? If you force an error to occur in PPWatch, does it also stops the services?
Also, what services does it stops? All of them, or just certain of them? (and which ones?)
Regards,
Raphaël Lalonde Lefebvre