The remote procedure call failed. (Exception from HRESULT: 0x800706BE) . visio crashes when accessing it using IIS7.5

I am new to .net & I am facing an unusual issue with my application. I am developing an application which opens up a visio file with certain shapes from a .net application. I am doing my development work in a Windows7 home premium 64 bit PC. I am using visual studio professional 2012 for development. I have installed Visio premium 2010. My application works fine when running from the visual studio (application runs in with the default IIS express which comes with visual studio). Now I am trying to deploy the application in to actual IIS server in the same development box. I enabled the IIS (version7.5) in my windows7 development box. I deployed the application in IIS without any issue(I followed this link http://www.codeproject.com/Articles/28693/Deploying-ASP-NET-Websites-on-IIS-7-0). But when I try to open the visio file from the application (by clicking a button.) I am getting the following error.

The remote procedure call failed. (Exception from HRESULT: 0x800706BE)

Description: An unhandled exception occurred during the execution of the current web request. Please review the stack trace for more information about the error and where it originated in the code.

Exception Details: System.Runtime.InteropServices.COMException: The remote procedure call failed. (Exception from HRESULT: 0x800706BE)

Source Error: An unhandled exception was generated during the execution of the current web request. Information regarding the origin and location of the exception can be identified using the exception stack trace below.

Stack Trace:

[COMException (0x800706be): The remote procedure call failed. (Exception from HRESULT: 0x800706BE)]
   Microsoft.Office.Interop.Visio.DocumentsClass.Add(String FileName) +0
   Export_Visio.Button1_Click(Object sender, EventArgs e) +294
   System.Web.UI.WebControls.Button.RaisePostBackEvent(String eventArgument) +155
   System.Web.UI.Page.ProcessRequestMain(Boolean includeStagesBeforeAsyncPoint, Boolean includeStagesAfterAsyncPoint) +3804

I am not sure why this error is happening only when I am running in IIS and not in IIS express which comes with Visual Studio. I checked at the event logs to see if I could get any further information on this. What I got from that is as follows.

Faulting application name: VISIO.EXE, version: 14.0.6122.5000, time stamp: 0x4fb499bf Faulting module name: VISLIB.dll, version: 14.0.6122.5000, time stamp: 0x4fb499f9 Exception code: 0xc0000005 Fault offset: 0x001303ae Faulting process id: 0x14d0 Faulting application start time: 0x01ce3e171e27cc2f Faulting application path: C:\Program Files (x86)\Microsoft Office\Office14\VISIO.EXE Faulting module path: C:\Program Files (x86)\Microsoft Office\Office14\VISLIB.dll Report Id: 5d12428f-aa0a-11e2-b7f3-e840f2736aca

Can someone please help me to find out what is causing this issue?

Note: my other office products installed in this computer are 2003 version(word, excel, power point etc) if that matters. Visio is 2010.

Thanks in advance.