The answer for us, that we found by accident, was to just not manually add the .exe to component services manager like we do the vb .dll's. It makes sense because building the .exe in VFP registers the COM component for me. Now I wonder why Win 2k and IIS5 required to manually add the .exe to component services? (or if I ever needed to at all..)

Our next task is to upgrade the server runtimes to VFP 8 and try the
mtdll's. Thanks for your help.

Ps - We are also looking at your ActiveVFP as an alternative as well.