The thing to keep in mind here is that 32-bit applications can't use 64-bit libraries and
64-bit applications can't use 32-bit libraries. ArcGIS Desktop is a 32-bit application --
either the 32-bit library is not present, or the 64-bit library is being found before the
32-bit in the PATH. I wish Windows would skip incompatible libraries (with a warning
message), but it doesn't -- it just returns "file not found" when the wrong file is found
first.
Technically, installing the application server is not necesary, but it is best practice
(if the libraries are on the machine, the full tool set should be available for trouble-
shooting, even if the application server is not run).
- V