This error is a permissions problem. This is a very frustrating problem for someone who doesn't know Windows Server 2003 very well.
Heres is a workaround:
1. go to Administrative Tools> Component Services
2. expand COM Services
3. expand My Computer.
4. expand COM+ Applications.
5. Right click on your Application, select Properties
6. Go to the Security tab
7. In the Authorization frame, uncheck “Enforce access checks for this application“
This isn't the best, since it grants every account on the machine access to create the objects in this application, but it's a quick/easy work around.