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Issues running excel in background with IIS 7.5

We are upgrading from 2003 server to 2008 r2.  We have a web form in php, that hands data off to vb6 (via text file and execution) to insert data into a excel spreadsheet, and return data (via text file).  This works great in 2003 iis.  It works great if PHP is called from command prompt in 2008 r2.  Once IIS calls php, excel opens and is visiable in task manager, but just hangs.

I have slimmed my vb6 app down to just calling excel with a new file and it still hangs.  Figuring it in an environment issue within iis.  Any ideas on how to make IIS run more as if it was the desktop, similar to IIS in 2003?

Update:  I can start a new spreadsheet in excel and save it to any allowed directory, but cannot open that file in the next run/pass?
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