First, some background informations:
Accessing a network share
If a process running on your client wants to access a (CIFS) share, it has to be run under a user account (or "Service ID") which has access rights to this share. There is a way (if the client is a member of Active Directory) that the machine name appended with $ (which is in fact the machine account’s name in AD) has to be entered in the ACL (Share / NTFS), but this is not a very "usual" way.
See also https://serverfault.com/questions/41130/network-service-account-accessing-a-folder-share
Windows Service running under a user account (aka technical account or Service ID)
A service running under a user account cannot access the GUI. There are some tricks, and some years ago I wrote a tool which allows a service to start another GUI program, where the GUI is displayed above the Ctrl-Alt-Del dialog. But this does not work under Windows 7 anymore.
But even a service which runs under local system cannot display a GUI on the logon screen.
You would have to write a Credential Provider.
See
Windows service showing a GUI when no user is logged in
https://stackoverflow.com/a/3074040/4547223
Another very deep technically article. It says it is possible to display a GUI on the secure desktop / logon screen. I have not yet tested this myself:
http://calebdelnay.com/blog/2012/01/displaying-a-program-on-the-windows-secure-desktop
Autologon
The most well known way is still the "classic" autologin.
See https://security.stackexchange.com/questions/10170/how-secure-is-windows-auto-logon for some explanations and links.
The medium secure way is to store the password as LSA secret (can be done in C# with P/Invoke or with some tools).
If I need to signin, user policies kick in, screen savers enable, etc.
Yes, but this can be handled, you probably have to create an own AD OU with an own policy for that.
I'm assuming if I use an automatic Service ID, I can let the application override most of the settings keeping the screen on and needed privileges assigned / locked down to the service ID.
A service ID /technical account is basically the same as a normal personal user account.
In some Active Directory enterprise environments a technical account has restrictions that it cannot log on interactively and other restrictions. But it still IS a "user account"
Logonexpert (http://www.logonexpert.com/)
I tested this (trial version). It is a nice, small tool which does it’s job. It is more safe than "normal autologon", however in the end, it is not much different from normal classic autologon. One benefit: it stores the password more recurely, but in theory, some hacker may still decompile the program and find out a way to decrypt it. And more important for you: Beside the more safe password store, it does not gain you much. You still have a user login same as normal autologon.
A few suggestions
Probably you can use a local user account on the client system and use normal autologon mechanism. And then you should consider that the client system does not poll for new data on a network share, but instead another server program (implemented as a service, running under a technical domain account) pushes data on a network share on the client.
Doing it this way, the client code does not need to access network shares, with the benefit, that a malicious attacker also has no access to network shares.
If you really need to access a network share from the local user context, you can probably logon to the server, as explained in my answer here:
https://stackoverflow.com/a/28749093/4547223
You have to to change the registry code part with the access to the CIFS share.
But doing it this way, you again have a password, which you have to encrypt and store. I do not recommend this.
In the end...
Windows does not make it easy what you want to do. If you are not strictly bound to Windows, you can consider using a Raspberry Pi with Raspbian (a Debian derived Linux). You can install Chromium browser, which displays a web page on the server and updates automatically. We use this with great success for some time.