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The reason for the difference is that when XPs are run they are run under the context of the service accounts that are used for SQL Server. When you login to the server using query analyzer, your account probably has system admin or the needed rights on both servers to execute the stored procedure. When you run the XP, the rights that are being used are that of the service accounts for the SQL Server services. Check the rights of the service account and make sure it has appropriate rights on both the local server and the remote server. If use a domain account that has the necessary rights to run SQL Server you could use this same domain account for the SQL Server services on both of your servers.
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