I tried so many things but nothing works.
Intrestingly the same code(literally as it is) works like a charm in MapPoint 2004.
However the same code fails to instanstiate the object(as the error 429 states) when run in MapPoint 2006.
Note: Interestingly the MapPoint.exe can be seen thru TaskManager.

Here are some of my observation.
My Source Code is in VB6 (SP5)
The VB6 Project adds reference to "Microsoft MapPoint 13.0 Object Library (North America). I am not using MapPoint.ocx to display any Map.

MapPoint 2004 software is using VC++6 DLLs
MapPoint 2006 software is using VC++7 DLLs

Not sure if my PC needs additional runtime files for VC++7 to run effectively.