Using a Callback in MS Visual Basic

I have been working with the "Using a Callback with a Microsoft Visual Basic Event " from the MATLAB Builder NE User's Guide. This example is on page 13-17. Everything is working fine: calling a COM object, adding events to COM object, but the I'm not able to receive a callback using MS Visual Basic. I think the problem could be from the process.m function. See below for the code example. Any ideas will be appreciated?

Thanks, Amanda

    function [x] = iterate(n,inc)
    %initialize x
    x = 0;
    % Run n iterations, callback every inc time
    k = 0;
    for i=1:n
    k = k + 1;
    if k == inc
    progress(i);
    k = 0;
    end;
    % Do some work on x...
    x = x + 1;
    % Pause for 1 second to simulate doing
    % something
    pause(1);
    end;

    progess.m
    function progress(i)
    %#event
    i