I have a DTS package which has worked beautifully for 2
months or more which I recently needed to migrate to a new
machine. I moved the package and all dependencies to a new
SQL server, and now all works except for a call to :

Set oShell = CreateObject("WScript.Shell")

The error handler reports : "70 Permission denied".

When I log in to the machine under the domain account
which SQLSERVERAGENT runs under, and execute the job, it
works without a hitch. When I then schedule the Package to
run as a job, and start the job, my log file reports
the "Permission denied" error on the CreateObject command.
If I change the user account for SQLSERVERAGENT to be
LocalSystem account, the job works when executed directly,
or when scheduled as a job. This is an imperfect solution,
however, as I cannot enable a SQLMailTask when the Agent
is logged in to the LocalSystem account. I have added the
domain account which I run SQLSERVERAGENT into the local
administrators group on the machine to no avail as well.
So, my main question is, why would permission being denied
instansiating a WSCript.Shell object when run as a job,
but not when executed under the same user account?

Again, this behavior does not exist on the previous server
which ran the job.

Any assistance would be _greatly_ appreciated. Thanks...

The server is version 8.00.760 SP3 Enterprise Edition.