Problem loading VB.NET UserControl in WebBrowser on Windows Form

[Mark]

I am converting a VB6/COM application to VB.NET and must remove all COM
objects.

VB6/COM App Architecture: Windows Form hosts WebBrowser which loads
HTML snippets from local disk. Some of the HTML snippets contain
<objecttags for ActiveX Control. ActiveX Control loads and works
without issue.

VB.NET App Architecture: SAME as above except for: The WebBrowser
Control is initially seeded by loading HTML from local disk. All Other
HTML snippets are loaded from app resource file. The load code is the
same, only the storage of the HTML snippet is different. All aspects
of the .NET app work as expected except the new .NET UserControl, which
will not load in the WebBrowser on the html page. All <objecttags
have been upgraded to the correct classid syntax:
Assembly#NameSpace.Class. The UserControl loads and works properly in
tests using localhost, i.e. http://TestUserControl/TestUC.htm (tried
with and without various permissions settings) BUT, I CAN NOT get the
same UserControl to load in the WebBrowser in the above mentioned
VB.NET App Architecture. All required Assemblies and HTML seed file
are in the App root folder. UserControl appears as empty rectangle
with small icon in upper left corner. No error messages.

Does anyone have any suggestions? Something I am overlooking? OR is
is just "That won't work."