When I installed the COM componets on Client. I was prompted for Server IP address and Protocol (I selected TCP/IP).

The Automation Server has to be running on the Server. Now when I want to Create an Object I issue CREATEOBJECT command. At this time the Automation server on the Server shows 1 Client 1 Object. Which removes any doubt about where the COM Component is running.

I am also wondering how the CREATEOBJECT command is successfully acomplishing what CREATEOBJECTEX is supposed to do.