These instructions will work for Server 2003 and 2008. Here is the full error message:

The application-specific permission settings do not grant Local Launch permission for the COM Server application with CLSID {12345} to the user NT AUTHORITY\NETWORK SERVICE SID from address LocalHost

1. Open Component Servers (Start -> Run -> dcomcnfg).

2. Expand Component Services -> expand Computers.

3. Right click My Computer -> Properties -> COM Security tab.

4. Click “Edit Default” under the “Launch and Activation Permission section.

5. Click Add -> Advanced -> Find Now.

6. Scroll down and select the “NETWORK SERVICE” user -> OK -> OK

7. Select the “NETWORK SERVICE” user and check the allow box next to “Local Launch”.

8. Click OK -> OK

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