Chances are the account your ASP.NET site is running under does not have permissions to run Powershell. Try creating a normal user account and running your site under that account to test. No, that is not a viable solution if it does work. The entire point of having such a restricted account is to prevent security issues if someone gets your code to execute something malicious.
Asking questions is a skill CodeProject Forum Guidelines Google: C# How to debug code Seriously, go read these articles.
Dave Kreskowiak