This paper presents novel service-based grid data management middleware that leverages standards defined by WSRF specifications to create and manage dynamic grid file system sessions. A unique aspect of the service is that the sessions it creates can be customized to address application data transfer needs. Application-tailored configurations enable selection of both performance-related features (block-based partial file transfers and/or whole-file transfers, cache parameters and consistency models) and reliability features (file system copy-on-write checkpointing to aid recovery of client-side failures; replication, autonomous failure detection and data access redirection for server-side failures). These enhancements, in addition to cross-domain user identity mapping and encrypted communication, are implemented via user level proxies managed by the service, requiring no changes to existing kernels. Sessions established using the service is mounted as distributed file systems and can be used transparently by unmodified binary applications. The paper analyzes the use of the service to support virtual machine based grid systems and workflow execution, and also reports on the performance and reliability of service managed wide-area file system sessions with experiments based on scientific applications (NanoMOS/Matlab, CHID, GAUSS and SPECseis).