>>If you have it running under MTS, by default, it is now an out-of-proc server. Unless I misunderstand the concept behind MTS (and that could be true).
>>
>That's an interesting point, Larry. I think it is "in process" in the sense that it is running in the MTS package process MTS (MTX.exe) creates for it. I.e. when the client instantiates the DLL, MTX.exe on the server is actually invoked which, in turn, launches the DLL. So from the client's perspective, I guess it would be "out of process", while form MTS's perspective it is "in process." If I've missed something here, I would appreciate clarification since we are wrestling with some MTS issues at this very moment.

I believe you have it right. As Mike posted, it does operate outside of the calling processes memory space. MTS adds an extra transparent layer and one of the things this provides is if the COM server crashes, it won't crash your process. MTS should just terminate the associated thread.