MS Business Objects (calling ADO DB) and Persistency problem


Our company is entertaining an idea to write full-blown financial
application using the WEB technology.  More specifically, 3-Tier
client-server application with
        - DHTML client using some client custom objects (ActiveX)
        - AxtiveX Server Business Objects using Delphi 3
When we wrote a little test application in accordance to MS IIS
documentation, we faced several problems one of which is critical.  On a
server side, when we create business object (using D3 ActiveX) and
utilizing script (VB or Java) function .CreateObject() and then, calling
the method of the object, everything works fine.  But when we try to use
some local variables inside Delphi ActiveX and call outside another
method(s) of the object, it looks like the entire ActiveX gets re-created
every time we call any of its methods.  

In fact, we logged every call to the object's Initialize method  to the
text file and found that the method is called every time we try to invoke
any of the object's method.  This happens when we try to use the business
object through HTML.  The same business object called directly from Delphi
application, works as we expected: without calling Initialize() every time
we call any methods of the object.  Please note, that the object is called
to be created only once.

We understand that it has something to do with Persistent object.  Can
anybody help?

Any suggestions will be highly appreciated.

Alex Zlochevsky