Found the problem after digging in to Sysinternals' Process Monitor a little more:
Calling EventLog.Exists("MyLog");
Logs Name not found, as expected in:
KLM\System\CurrentControlSet\services\eventlog\MyLog
Calling EventLog.SourceExists("MySource");
Checks several places, name not found in as expected:
HKLM\System\CurrentControlSet\services\eventlog\Application\MySource
HKLM\System\CurrentControlSet\services\eventlog\HardwareEvents\MySource
HKLM\System\CurrentControlSet\services\eventlog\Internet Explorer\MySource
HKLM\System\CurrentControlSet\services\eventlog\Key Management Service\MySource
HKLM\System\CurrentControlSet\services\eventlog\Media Center\MySource
HKLM\System\CurrentControlSet\services\eventlog\ODiag\MySource
HKLM\System\CurrentControlSet\services\eventlog\OSession\MySource
HKLM\System\CurrentControlSet\services\eventlog\Security\MySource
HKLM\System\CurrentControlSet\services\eventlog\System\MySource
HKLM\System\CurrentControlSet\services\eventlog\VisualSVNServer\MySource
HKLM\System\CurrentControlSet\services\eventlog\Windows PowerShell\MySource
HKLM\System\CurrentControlSet\services\eventlog\Application\MySource
HKLM\System\CurrentControlSet\services\eventlog\HardwareEvents\MySource
HKLM\System\CurrentControlSet\services\eventlog\Internet Explorer\MySource
HKLM\System\CurrentControlSet\services\eventlog\Key Management Service\MySource
HKLM\System\CurrentControlSet\services\eventlog\Media Center\MySource
HKLM\System\CurrentControlSet\services\eventlog\ODiag\MySource
HKLM\System\CurrentControlSet\services\eventlog\OSession\MySource
HKLM\System\CurrentControlSet\services\eventlog\Security\MySource
HKLM\System\CurrentControlSet\services\eventlog\System\MySource
HKLM\System\CurrentControlSet\services\eventlog\VisualSVNServer\MySource
HKLM\System\CurrentControlSet\services\eventlog\Windows PowerShell\MySource
HKLM\System\CurrentControlSet\services\eventlog\MyLog
However, calling EventLog.CreateEventSource("MySource", "MyLog");
Finds MyLog in the following registry location and errors:
HKLM\System\CurrentControlSet\services\eventlog\Application\MyLog
Removing "HKLM\System\CurrentControlSet\services\eventlog\Application\MyLog" and re-running fixed my problem!
Looks like the .Exists don't look in all the places .CreateEvent does!