I just posted something similar. My suspicion is that when the drawing layer is using tkDrawReferenceList.dlScreenReferencedList, it doesn't work. As an experiment, you could try changing the parameter of the NewDrawing call to indicate tkDrawReferenceList.dlSpatiallyReferencedList instead. Then your call to labels.AddLabel should use projX and projY. If the labels show up, that leads me to believe there is a bug in the ActiveX control.
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