Whoa, whoa!
First, Web Server controls (part of .NET) do spit out just HTML - and you can set the compatability to work with IE, Netscape and more.
ActiveX controls can be hosted in the browser and mostly work with IE but also work somewhat with Netscape 6 and higher.
The Web Server controls do NOT need the 20mb framework on a client machine, only on the server. If you're not running .NET on the server, you obviously wouldn't need the framework there either (then you might just have ASP not ASP.NET pages).
As for being able to copy files and start an EXE you CANNOT use the Web Server controls as they don't have the permission to run on a client machine. An ActiveX control can do this, but usually (and hopefully) the user will be prompted to install and run your ActiveX control which you'll want to have signed so that the user will have some idea whether to "trust" your code or not.
If you develop the ActiveX control, I'd suggest using VB6. In that case, you'll have to make sure the end-user has the VB6 runtime (which should be on just about everyone's machine anyway).
An alternative to ActiveX would be a Java class. I'm not real familiar with developing those classes, so I can't speak on the permission you'll have but I would guess it's the same as ActiveX (you'll have to get prompted before having any Java code run that could harm a user's machine, such as copying files or starting EXEs).
-Nerseus