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Excel 07 fails to open documents, "Windows cannot find c:\xxxx"

I have an instance of Excel 07 with Office SP1 installed where if you double click a spreadsheet (.xls or .xlsx) you get a  message;

Windows cannot find 'C:\Users\director\Desktop\Book1.xls'. Make sure you typed the name correctly, and then try again.

The same occurs if you right mouse button and select open.

If you open Excel and go file, open it does open the file which means to open any spreadsheet you have to save all the docs (even from  email etc) to be able to do anything.

I have tried re-associating the file type with Excel, no change.

This is on Vista Business

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Rory Archibald
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ASKER

Exellent, spot on thanks