The answer to your dreams
At last somebody else who has come across this problem!!!
It is such a frustrating problem I don't know how we have not seen more of it!
Anyway, I was having a problem with my VB IIS apps working in design mode but not after compilation, I think this is the same probem that you are having. I contacted all the experts and was asked all the silly questions you were asked, none pointing at the solution:
Cursor locations, cursor types and lock types, I am not sure which exactly but a certain combination will cause the app to fail when runnng from from IIS, also make sure your DSN is a system one not user.
Check you cursor locations and stay away from disconnecting the recordset, it does not work.
This solved my problem and cured me of weeks of agony, let me know if it solves your problem.
Regards
Clunietp you are the best
Clunietp you are the best