How to use MS Word features from Rails app running as servic


I am using features of MS Word 2003 on Win XP in my rails application.
The server has Win XP

installed. I am able to open a document, save as HTML etc. if I run the
app using

mongrel_rails start … on command prompt.
I use the Win32OLE support for Ruby:
doc =‘Word.Application’)

However, at the deployment site, I have configured the app to run as a
Windows Service using the mongrel:
mongrel_rails service::install -N EDiscussions -c appdir -p 80 -e

The application runs fine except for the actions that use Word features.
Debug statements indicate that the program does not get past the line:
doc =‘Word.Application’)

The service is configured to run using Local System account and is
allowed to interact with the desktop.

Can someone suggest what I might be missing here? How do I get it to
work while running the app as a service?