Wow, something that actually took a little bit of searching to find info out
about.

After a few attempts, simply using "*The production level is insufficient" *as
my search phrase gave me successful hits.

http://blogs.msdn.com/michen/archive/2006/11/11/ssis-product-level-is-insufficient.aspxseems
fairly canonical. Here's the excerpt:

The error tells you that you have not installed SSIS on the machine where
the package is 
running<http://blogs.msdn.com/michen/archive/2006/08/11/package-exec-location.aspx>-
probably you've only installed SQL Server and Workstation Components.
Another possible reason is that the package uses components that require
higher edition of SQL Server - e.g. Fuzzy and Data Mining transforms require
Enterprise or Developer edition.

If you have installed Workstation Components, you can create, edit and debug
packages in Business Intelligence Development Studio (BIDS). You can also
run Import/Export Data Wizard and execute the resulting package inside the
wizard. Other uses of SSIS (i.e. *running with DTEXEC*, inside Agent or
custom tools) require full SSIS installation.
Bold underlined italics added.

Back to waiting for the DB guy to switch over our packages to SSIS. :)

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