Looks like this problem was discussed here before and it turned to be the file included in the project

Re: XMLTOCURSOR pathing bug Thread #1309728

>I have a COM DLL written in VFP9, it works fine on my machine and on others. One of it's functions uses XMLTOCURSOR()
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>However I as soon as I try and call it on the server where it needs to run I get:
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>"msxml3.dll : The system cannot find the path specified"
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>Any ideas?
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>Regards
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>Gary.