Sp_OACreate In SQL Server 2005, Fails With 'Not Enough Storage Is Available To Complete This Operation'

Hi all,

I have created a small COM in C# so that I can programatically create and execute stored procedures with SMO. At this point the COM has nothing in it but just a test prototype.
But when I tried to create the object as follows, I get the error indicated below.
It is not a memory issue because I have adequate storage and RAM.

Please Help!

DECLARE @object int
DECLARE @hr int
DECLARE @property varchar(255)
DECLARE @return varchar(255)
DECLARE @src varchar(255), @desc varchar(255)

-- Create an object.
EXEC @hr = sp_OACreate 'SQLInterop.CsharpHelper', @object OUT
IF @hr <> 0
BEGIN
EXEC sp_OAGetErrorInfo @object, @src OUT, @desc OUT
SELECT hr=convert(varbinary(4),@hr), Source=@src, Description=@desc
RETURN
END

This is the error I am getting:

Error Code: 0x8007000E
Description: Not enough storage is available to complete this operation.
Source: ODSOLE Extended Procedure


This is the C# code for the COM:

using System;
using System.Runtime.InteropServices;
using System.Reflection;
using System.Runtime.CompilerServices;
using System.EnterpriseServices;

// General Information about an assembly is controlled through the following
// set of attributes. Change these attribute values to modify the information
// associated with an assembly.
[assembly: AssemblyTitle("CSServer")]
[assembly: AssemblyDescription("Test SQL .NET interop")]
[assembly: AssemblyDelaySign(false)]
[assembly: AssemblyKeyFile("MyKey.snk")]

// Setting ComVisible to false makes the types in this assembly not visible
// to COM components. If you need to access a type in this assembly from
// COM, set the ComVisible attribute to true on that type.
[assembly: ComVisible(true)]

// The following GUID is for the ID of the typelib if this project is exposed to COM
[assembly: Guid("ff35c6b4-81bf-47dd-9290-fcbbb49008d9")]

// Version information for an assembly consists of the following four values:
//
// Major Version
// Minor Version
// Build Number
// Revision
//
// You can specify all the values or you can default the Revision and Build Numbers
// by using the '*' as shown below:
[assembly: AssemblyVersion("1.0.0.1")]
[assembly: AssemblyFileVersion("1.0.0.1")]

// the ApplicationName attribute specifies the name of the
// COM+ Application which will hold assembly components
[assembly: ApplicationName("SQLInterop")]

// the ApplicationActivation.ActivationOption attribute specifies
// where assembly components are loaded on activation
// Library : components run in the creator's process
// Server : components run in a system process, dllhost.exe
[assembly: ApplicationActivation(ActivationOption.Server)]
namespace SQLInterop
{
public interface ITest
{
string SayHello();
string SayIt(String strMessage);
}

//[SecurityRole("RBSecurityDemoRole", SetEveryoneAccess = true)]
[ComVisible(true)]
[CLSCompliant(false)]
[ClassInterface(ClassInterfaceType.None)]
public class CSharpHelper : ITest
{
public string SayHello()
{
return "Hello from CSharp";
}

public string SayIt(String strMessage)
{
return strMessage + ": from CSharp";
}
}
}