It may also be a permissions issue. Since COM (and parts of .NET) are wired into the registry, and partial trust applictions can't access a lot of local resources.
By default network shares only have partial trust by the .NET framework, where as local drives have full trust.
Go into start -> Control Panel -> Administrative Tools -> Microsoft .NET Framework 2.0 Configuration
From here use the image below to change your local intranet trust level to full.
(You also have the option of only giving full trust to your application specifically, instead of all network locations. That is up to you)
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