>The problem I'm having is with UNC's. When I point the INI
>at a database using UNC's like "\\someserver\somedirectory"
>it doesn't work in web environment, but works when I
>instantiate COM object from Command Window. In other words,
>when it instantiates in web environment path fails and when
>instantiate from Command Window it suceeds. Also, I have
>assigned the "Everyone" permission to data directory.

Have you tried explicitly granting permissions to that directory for IUSR_SERVERNAME, instead of just Everyone?