Bump... Anyone? Just some pointers on other things to possibly try would be great. Thanks!
Most likely, it's a permissions issue. If you look at the alerting service, it's likely running as one of the default service accounts. If you were to change it to use a local or domain account, that you know had rights to PSExec and the items that PSExec was doing, you should see it work without an issue. Try using the same account you were using from the command line.
You may also be able to use the -p and -u command line arguments for PSExec to make sure that it is using the correct user(and not the service account being inherited from the from alerting service).
Thanks for the response.
Sorry. Forgot to mention that we've already set the alerting service engine to use the same local user account that has been set up on both servers using the same password. We have also tried including the -p and -u command line arguments in the alerting service and unfortunately that did not work either even though the -p and -u command line arguments do work when running from command line.
Any other ideas?