CreateObject("Excel.Application") problem

I'm trying to create an Excel file using a VB program. I have added the
reference to Excel Object Library yet when I try to compile it, I get
an error at the line exc_app = CreateObject("Excel.Application")

System.Exception was unhandled
Message="The remote server machine does not exist or is unavailable."
Source="Microsoft.VisualBasic"
StackTrace:

Do I need to turn on some kind of service in order to get this working?
What exactly does this error message mean?

.

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