Is this in XP ?

If so then maybe trying a system restore, go back a few days, see if it fixes things.

I'm sorry, but haven't got an answer as to why this might have happened, nor any real solution

edit: Found this page using Google

http://www.alibutt.com/?p=241

And there are many more

http://www.google.com/search?sourceid=navclient-ff&ie=UTF-8&rls=GGGL,GGGL:2006-36,GGGL:en&q=Error+%22Automation+server+can't+crea te+object%22+%22Control+Panel%22