Cannot create an instance of OLE DB provider "IBMDADB2" for linked server

System:Win 2003, SQL Server 2005, Using an AD win account that is not a member of the Admin group on the server.

Error message from Management Studio query window:

Msg 7302, Level 16, State 1, Line 1

Cannot create an instance of OLE DB provider "IBMDADB2" for linked server "Sname".

Event messages associated with this error:

App Event ID: 19036

The OLE DB initialization service failed to load. Reinstall Microsoft Data Access Components. If the problem persists, contact product support for the OLEDB provider.

Sys Event ID: 10016

The application-specific permission settings do not grant Local Activation permission for the COM Server application with CLSID {2206CDB0-19C1-11D1-89E0-00C04FD7A829}

to the user domain\user SID (S-1-5-21-126051702-1034962659-2130403006-7826). This security permission can be modified using the Component Services administrative tool.

I’m getting this error message when trying to run an openquery statement through a linked server to DB2. (SELECT * FROM OPENQUERY(Sname, 'SELECT * FROM tablename’))

The linked server has a remote login and password that it uses to connect to DB2.

I found this from another post on how to fix this error:

Expand Component Services - Computers - My Computer - DCOM Config Select MSDAINITIALIZE Right Click properties then security

Under Security - Launch Permission: enable Local Launch and Local Activation for your SQL Service account

Under Security - Access permissions: Allow System: Local Access and Remote Access.

After completing these steps I still get the error message but the events are no longer generated.I’ve also tried different variations of these steps.The only way I can get this to work is to either make the AD user a member of the Admin group on the server or by putting in a user account that has admin rights to the server in the MSDAINITIALIZE properties – Identity Tab – Run this App as this User.

Can someone please tell me the steps that I’m missing?

Additional info:

If I set the providers allowinprocess to 1 with this,

EXEC master.dbo.sp_MSset_oledb_prop N'IBMDADB2', N'AllowInProcess', 1

It responds with this error:

OLE DB provider "IBMDADB2" for linked server "LName" returned message " SQL10007N Message "0" could not be retrieved. Reason code: "2".

".

Msg 7303, Level 16, State 1, Line 1

Cannot initialize the data source object of OLE DB provider "IBMDADB2" for linked server "LName".