I used procmon but I didn't get any PERMISSION DENIED result.
I added the account IUSR_<machine> on Launch and Activation Permissions under Component Services\My Computer\COM Security and the error now changed to:
Server object error 'ASP 0177 : 80030070'
Server.CreateObject Failed
gencookie.asp, line 11
80030070
I don't see anything different on procmon and no Event logs either. Any suggestions?