Chilkat RSA Encrypt fails in Windows7/IIS7

I developed a simple ASP.NET website that uses Chilkatdotnet2 (version 9.0.8.0) to generate RSA Public/Private Key pair used for encryption. Below is the sample code

        bool success;

        string UnlockChilkatRSA = "XXXXXXXXXXXXXX";
        int RSAKeyLength = 1024;

        Chilkat.Rsa rsa = new Chilkat.Rsa();
        success = rsa.UnlockComponent(UnlockChilkatRSA);
        if (!success)
        {
            lblmsg.Text = "RSA component unlock failed";
            return;
        }
        success = rsa.GenerateKey(RSAKeyLength);
        if (!success)
        {
            lblmsg.Text = rsa.LastErrorText;
            return;
        }
        string publicKey = rsa.ExportPublicKey();
        string privateKey = rsa.ExportPrivateKey();

This works well when I host my web in Windows Server 2003 (IIS6), but when I tried to host it on Windows7 (IIS7), this line of code success = rsa.GenerateKey(RSAKeyLength); doesnt work and cause the web to freeze. Anyone has experience the same issue, any feedback would be appreciated.

I solved it by changing Process Model Identity to NETWORK SERVICE instead of default ApplicationPoolIdentity in IIS7 Application Pools