Just wanted to add my commebts to this thread.
I used an editorial service for my first novel, and it was a direct link to getting published. I used Hilary Johnson (I'll post the link in a moment)and she says on her website that she is a scout for a major abency. and it's true! After my rewrite she sent the ms - without my knowledge - straight ti Sarah Molloy at A M heath, who called me the moment she[d read it and asked her to visit her (I had to travel from germany at the time!). By the time I arrived there she had alreday shown it to an editor and was telling everybody - which was rather cheeky of her as I hadn't signed her on yet.
ANyway, that was how I got published, and I don't regret it. Hilary's advice (actually, it was her reader's advice as she was ill at the time) was spot on.
It cost me around £300 - money well spent, I think.
<Added>Here is the link to Hilary's website:
http://www.hilaryjohnson.demon.co.uk/