Issues opening Embedded Excel Sheets in Word 2007

Windows XP - Office 2003 & Office 2007 - Sharepoint (not the current version) - McAfee Virus Scan

We have users who use sharepoint to open word docs.  The Word docs were created in Word 2003 and when they were created they embedded Excel 2003 sheets.  
We have since upgraded to Office 2007 and now SOME but not all users try to go into sharepoint and open those word docs and then try to open embedded excel sheets they are getting the message:
Microsoft Office Word Can't start the application required to open this object.  
An error occurred and this feature is no longer functioning properly.  Would you like to repair this feature now?
If we say NO it gives another error message:
This object is corrupt or is no longer available.  
If we say YES to repairing the feature then it goes through the install process and we have to restart.
This does not fix the issue.

I have tried several things to fix this and none of them have worked.
I have tried enabling the macro security and link security among other things.  

I have searched this site and googled it and am not finding the exact issue or a resolution to this issue.  
Can anyone give me any sound advice?  or something else to try.
bwesenbergAsked:
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bwesenbergConnect With a Mentor Author Commented:
This did not work.
However we found that the user who put them there was using links to her hard drive and not a network location.  This was fixed and now the issues are gone.  
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akjainCommented:
Try opening word with add-ins disabled
i.e - Go to start -> Run -> type  winword /a  and hit enter.
Open the doc which has embedded excel sheet and try to open the xls.

(Also check these links:
http://support.microsoft.com/?id=921541
http://support.microsoft.com/kb/224649#appliesto)
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