Can't register/add COM object in windows 2008 R2

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I’m getting the error below when registering the C#.net based crypto.dll in Windows 2008 R2.
The COM object built using .Net 3.5 & VS 2008 and signed with strong name key. The same ddl was hosted in windows 2003 server and worked. having issues only on Windows 2008 R2. The COM object also targeted for any CPU platform. So i think there will not be problem with 32/64 bit OS versions. Also the user trying to install this COM object has administrative privileges on this Windows 2008 R2 server.

Getting below error: System.EnterpriseServices.RegistrationException:You must have admisntrative credentials to perform this task. Contact your system administrator for assistance System.UnauthorizedAccessException: Access is denied.(Exception from HRESULT:0:80070005(E_ACCESSDENIED))

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I also get a permission error when trying to install it via the components.If I try to install the component without registering the Crypto.DLL I get the error message below.

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