IIS - w3wp.exe crashes on loading the web service

I have a simple web service which loads and OCX. On calling a method of this OCX, which essentially makes a connection with remote server causing w3wp.exe to crash. I have no clue why this happens. In my assumption this could be a security issue because when I run the same from Visual Studio directly with logged in user doesn't have any problems. How to solve this? The following log has been captured from DebugDiag

Type of Analysis Performed Crash Analysis Machine Name INGBTCPIC5DT00L Operating System Windows Server 2008 R2 Service Pack 1 Number Of Processors 8 Process ID 2088 Process Image C:\Windows\SysWOW64\inetsrv\w3wp.exe System Up-Time 02:06:52 Process Up-Time 00:00:07

Thread 32 - System ID 1320 Entry point ole32!CRpcThreadCache::RpcWorkerThreadEntry Create time 2/7/2012 5:09:58 PM Time spent in user mode 0 Days 0:0:0.46 Time spent in kernel mode 0 Days 0:0:0.218

Full Call Stack

Function Arg 1 Arg 2 Arg 3 Arg 4 Source ntdll!__ascii_strnicmp+1c 00000038 767c7bb0 0000000b 1d7b2aa0
gdi32!bCreateDCA+31 00000038 00000038 00000000 00000000
gdi32!CreateDCA+18 00000038 00000038 00000000 00000000
Common!MonProp::SetMonitorSizes+49 00000000 00000000 00000000 00000000

Exception Information NTDLL!__ASCII_STRNICMP+1CIn w3wp_DefaultAppPool_PID_2088_Date__02_07_2012__Time_05_09_59PM_625_Second_Chance_Exception_C0000005.dmp the assembly instruction at ntdll!__ascii_strnicmp+1c in C:\Windows\SysWOW64\ntdll.dll from Microsoft Corporation has caused an access violation exception (0xC0000005) when trying to read from memory location 0x00000038 on thread 32

Module Information Image Name: C:\Windows\SysWOW64\ntdll.dll Symbol Type: PDB Base address: 0x00905a4d Time Stamp: Thu Nov 17 10:58:47 2011
Checksum: 0x00000000 Comments:
COM DLL: False Company Name: Microsoft Corporation ISAPIExtension: False File Description: NT Layer DLL ISAPIFilter: False File Version: 6.1.7601.17725 (win7sp1_gdr.111116-1503) Managed DLL: False Internal Name: ntdll.dll VB DLL: False Legal Copyright: © Microsoft Corporation. All rights reserved. Loaded Image Name: ntdll.dll Legal Trademarks:
Mapped Image Name: Original filename: ntdll.dll Module name: ntdll Private Build:
Single Threaded: False Product Name: Microsoft® Windows® Operating System Module Size: 1.50 MBytes Product Version: 6.1.7601.17725 Symbol File Name: c:\symcache\wntdll.pdb\D74F79EB1F8D4A45ABCD2F476CCABACC2\wntdll.pdb Special