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On the HOST and EACH CLIENT machine:

Enable machine wide, remote access to COM for Anonymous Logon users

From the Start menu, click Settings > Control Panel.
If using the Classic View, double-click Administrative Tools. Otherwise, click Performance and Maintenance, and then double-click Administrative Tools.

Double-click Component Services.

From the Console Root, open Component Services > Computers > My Computer. If you see a Security Alert dialog box, click Unblock.

Right-click My Computer, and click Properties.

In the My Computer Properties dialog box, on the COM Security tab, in the Access Permissions group, click Edit Limits.

In the Access Permission dialog box, choose ANONYMOUS LOGON, and select Allow on the Remote Access entry AND Allow on the Local Access Entry.

Click OK, and then click OK again.

Close the Component Services window and the Administrative Tools window.