You need to configure your service to be dependent on the MSMQ service. This is should be automatically taken care of if you're using the NServiceBus host.
Have seen the same problem. Actually the impact was even worse since we used log4net and SmtpAppender. Took down the mailserver, ouch!
Seems like this is fixed in NSB 3. It sets number of workerthreads to zero and logs "please reboot service". You can even execute own code when the error occurs.
Config with lambda using OnCriticalError. We ended up patching the NSB 2 code, since we havent upgraded to NSB 3 yet. Handling MSMQExceptions, logging and stopping the process on errorcode ServiceNotAvailable like they already do when you don't have correct rights to queue.
You should probably stop the service on any MSMQExceptions exept IOTimeout.
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