I found where the security error is coming from. After
going through my DCOM settings (I didn't know the dll was
a DCOM) I found that the DLL was set to run on a remote
Dev server instead of my machine. Since my settings in
IIS were to have the anonymous user log in as my Domain
User account I am at a loss as to what needs to change on
the DEV server to give internet applications permissions
to execute on the remote server. But if I execute locally
everything works fine so that is the key. At least I know
what area to search in now.

Thanks to those that responded, and thanks in advance to
anyone that lets me know how to fix the issue.