We found the problem. We did not have FoxPro 8.0 service pack 1. One of the issues addressed in FoxPro 8.0 Service Pack 1,

-Servers- When calling a method from a second server instantiated in single MTDLL under COM+, "Unknown name" error occurs.

We installed SP1 recompiled and everything ran great.

Thanks for everyones help. Your suggestions helped me fine tune the application. Great learning experience.