Believe it or not, I figured out the problem!
It was a SECURITY isssue the entire time. I was quite sure that was not the problem because I thought the IUSR_servername had access to c:\winnt\system32 directory. I suppose I still don't quite understand security for IIS.
To figure out the problem, I wrote a very short visual basic program using the scrrun.dll object. I was able to run this under my own logon id, but when I logged in as IUSR_servername on the IIS server, I got the same error. This told me it was security related. I was not a happy camper, obviously.
Next, since I apparently thought I understood security, but didn't, I gave IUSR_servername Administrator rights. I know it's not a good thing to do, but my server is behind a firewall so the outside world can't touch it. (<--justification). Everything worked when I did this.
Now, I want to actually go back and figure out what the security rights should be, but time is lacking right now. I will make the time soon as I really want to know! If anyone knows the answer, then post it! When I find out, then I will put the answer on here.
Thanks everyone for your time for answering my post. I learned a lot! It really is very much appreciated X-)