first of all, i would just like to ask if you are a "kababayan" (a fellowmen in philippines) because your name sounds like one. if not, my apologies.
also, sorry for the late reply. i've been very busy with the holidays and still am suffering from hang overs. lol.
to answer, your main issue is not on the conversion of access but on your server/client platform policy because i've done plenty of conversion from access 97 to access xp (2002). kindly check first with your network admin if he/she has allowed certain permissions on the folder(s) or even files since the error you mentioned is really more on network security. you'll find out that there's nothing wrong with your conversion as soon as this issue is cleared.
also, there's no need for you to adjust internet explorer settings since this has nothing to do with your access database project in the first place.
about accessing your database from the client, that would depend on your usage. if you are using your database within several pcs then the data access page would suffice. otherwise, if it would be on an intranet environment and you want to use IE and don't wish to install access on every client that would use the database then ASP is for you. again, i'd be glad to show you some asp snippets or even discuss some methodologies i've done which is quite similar with your issue if you wish.
lastly, if you would entrust me your access databases. kindly email it to me (minus the data, of course, or whichever you prefer) and i'll convert and email it back to you. should you have any more questions you may email me here or even directly at this addy "rc.benito@gmail.com". i'd be glad to help you out on this.
to everybody here at TechRepublic, a belated Happy New Year to all!