I\'m successfully using Office automation on Windows Server 2008 R2 with Office 2007 in order to convert Office documents to PDFs. The code is rather simple:
One of the reason to see that error message is if server is missing SysWow64 folder. Here a link that might help you understand better.
http://per.lausten.dk/blog/2011/04/excel-automation-on-windows-server-2008-x64.html
The only solution found is to make the process that invokes Office API to run as interactive. It can be done by just running a console app (not the brightest idea for server solutions) or by creating some background service (e.g., windows service) and set it's station (SetProcessWindowStation).
I'll probably get downvoted for this answer, but I work in an enterprise environment where we have a product that uses Office Automation, and it is very problematic.
I've done research in this arena, and Microsoft itself recommends against doing Office Automation.
The following is directly from Microsoft's MSDN knowledge base
Microsoft does not recommend or support server-side Automation of Office.
Also
Microsoft does not currently recommend, and does not support, Automation of Microsoft Office applications from any unattended, non-interactive client application or component (including ASP, ASP.NET, DCOM, and NT Services), because Office may exhibit unstable behavior and/or deadlock when Office is run in this environment.
Source: http://support.microsoft.com/kb/257757