I had the same problem.  If you change the state string argument in the
receiving function to ByRef instead of ByVal, it seems to correct the issue.
The problem with this is the overhead incurred on DCOM calls when sending
ByRef parameters, but I didn't have this problem when I would make
cross-process calls, only when I called a function that was in the same
process (actually, only in the same dll), such as passing state information
down to the child persistence objects.

Peter Conrey
Sr. Programmer/Analyst
Transaction Graphics, Inc.
(xxx) xxx-xxxx