Hi!
Your problem seems quite complex. I can't dive in to it. A few thoughts...
If I understand your description right all your VB5-application does is to talk to the SQL server. Is this correct?
I'd use the VB5 stuff as a design specification and something to compare to. Write it all from scratch - if I understand you correctly and you're supposed to go from VB5 programs to a web based solution. You should have quite a lot of help from the existing code. Since (if I understand correctly) you're "only" after a straight forward "put some stuff in the DB and read som other stuff" without complex business logic you could use visual web developer. Should do the trick quite nicely and quick.
Apache or IIS depends on what platform you develop on I think. Running stuff from e.g. visual web developer on an Apache server will give you problems (if possible?).
I didn't understand the VB - RFID - PLC stuff but be ware that talking to a PLC system isn't allways easy. Hope you don't have to go in to that. What brand PLC are you using?
Give us a smaller pice of the problem to start with...

/Jens