BleepingComputer.com: Security Settings Prohibit Running Activex Controls On Page

Dell Precision 360, XP Pro SP2, AOL dial-up, HP Ljet 3055

HP Ljet 3300 (prt/scan/copy) died, so installed HP Ljet 3055 (prt/scan/copy/fax) using network connection. Prt/copy OK, but scan fails with 'hp scanning... Your current security settings prohibit running ActiveX controls on this page.' HP software has been reinstalled several times. Internet security is Medium, Intranet security was changed from Med-low to Low. IP address of printer was added to Trusted Sites. Popup blocker is disabled. Hardwarer drive signing is set to Ignore. Also fails using USB connection. The problem must be specific to this PC, otherwise thousands of people would be having the same issue. Running Spybot 1.3 did not help (only found 3 tracking cookies). Tried installing latest version, but got 'C:\WINDOWS\system32\XMD5.dll... Unable to register the DLL/OCX: DllRegisterServer failed; code 0x8007007E.'

I am basically just a Windows user myself, but function as the 'admin' for my adult son's home office network (peer-to-peer, 1 PC running XP Pro, 1 PC running ME, 2 HP plotters, 1 HP Ljet 3055, 1 Cannon inkjet) which is 20 miles away. Have pretty much exhausted all suggestions from HP Tech Support and co-workers, so am turning to you for help. What do you suggest?

Mod Edit: Moved topic to more appropriate forum. ~ Animal

When you installed the combo printer did you have it connected before you installed the software? It should not have been connected until it told you to do so on screen.

Try deleting the printer entirely (including all control software), rebooting and reinstalling it.

Are you saying that Active X is not working oon an Internet Explorer page?

If so, open Internet Explorer
click on "Tools"
then "Internet Options"
Click on the "Security" tab
Click the "Custom Level" button

Set your Active X Controls as shown:

Ljet was installed per instructions... connect printer to network, install software, let software find printer on network, reboot, print test page. No problems... until you try to scan.
The Internet custom security settings for ActiveX have been checked again and again and are NOT the issue. I was on the phone with HP TS for over 2 hours checking security settings, uninstalling/installing, etc. Internet security can not be set lower than Medium, but I don't think that would help anyway.
The HP Scan software is the only application that is open when error occurs, but when msg says '...on this page' I assume Internet Explorer components are still being used. Having IE (+ AOL) open makes no difference... no msg, no popup, nothing.
Maybe problem is caused by a corrupt/missing file or registry entry. Is there a way to trace activity and capture it to a log file?