The error number that you originally reported, 7302, is a SQL Server error saying that it couldn't create the specified object, OLE DB provider 'STREAM', in this case.
I checked MSDN and didn't find anything. I'm really surprised that you're still having problems after upgrading to MDAC 2.6. MDAC 2.5 introduced the stream objects.
I'm not sure what's happening. Sorry.
-Mike