I am sure that I am passing the right path. I tried the same logic of accessing the the driver and sending an IOCTL from stand alone application (command line) and was able to open the device and issue an IOCTL. I am getting this problem when I move the logic to Windows service. And as per the discussion (link that I pasted in my previous thread) it appears that

"The PC/SC service takes exclusive ownership of the devices, so any attempt to call 'CreateFile' will always fail."

Is this statement true? Any other solution to this problem?