Has anyone been succesfull using the following code (Sharepoint OM) to
create new site in MOSS 2007 ? I've not overcome the credential problem
no matter what i used, i.e, impersonation (thru web.config), new
CredentialCache, or running the Web Service using a special App Pool
with Admin rights.

SPSite Site = new SPSite(SPSitePath);
SPWeb mySite = Site.OpenWeb();
SPWebCollection subSites = mySite.Webs;
string currentTemplate = mySite.WebTemplate;

subSites.Add(siteUrl, siteTitle, siteDescription, 1033,
currentTemplate, true, false);

The code works fine, when it is execute inside VS 2005. But not thru
IIs, ie, stand alone.