LoadLibrary Fails

I use c++ and Delphi to create web-services used internally in our organization. I send some rather large xml documents around so I decided to see what compression would do for me. I am trying zlib and it works well, but running my web-service on Windows Server 2003 (a development box) I get errros that it cannot find the dll I am trying to load. I put the dll in system32, intserv (might be mis-spelled but it is where the iis process runs from) and the directory where my web-service loads from. Using full paths or not I get a window's error that it cannot find the module (zlib1.dll). It works if I create a COM object that loads and calls the DLL and then create an object instance from my web-service dll. Does anybody know why I can't load the DLL from the web service? It is probably a security issue, but I would rather eliminate the COM wrapper.
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