Very Computer

Hi,
I have a strange problem here:
one of my developers created several DTS packages that very simply clear the
contents of a table, then re-populate it from an ASCII file. if I or the
developer execute any of the packages manually, they run OK. if I then try
to schedule the package or sit at the server console and run it manually
(logging in as the SQL server agent account, my account, or even the
Administrator account), the re-populate step fails. the DTS output indicates
that the 'ActiveX engine' failed to initialize and the security event log
has a 577 'privilege use' failure on the logged in account (not the account
the SQL server agent has been assigned).
the server is NT 4.0 SP5 running a DNS server and MS SQL 7.0 SP1.
I would gladly welcome an assist.