How can I make an Automator service run a Terminal and display the output?
Change the following line of code:

do shell script "cd " &amp; archiveDir &amp; "; rar a -ol[a] -mt8 -m5- -y -s -m4 -t " &amp; archiveName &amp; listFiles


To:

tell application "Terminal"
    do script "cd " &amp; archiveDir &amp; "; rar a -ol[a] -mt8 -m5- -y -s -m4 -t " &amp; archiveName &amp; listFiles   
end tell