I can't say how much frustrated I am. It seems they have disabled the option to withdrawal bitcoins? Can some1 confirm?
The "service is disabled" message happens when the API responds with any error at all, so is very misleading. Just keep trying everything 10-20 times and you should eventually be able to complete the process (yes, this is obviously very frustrating, I would suggest avoiding Kraken until they have solved their load issues if you can)