Excel 2010, File type blocked by File Block Settings

XDS1
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Hi All,

I have a user who is running Windows 7 64bit with Office 2010 64bit.
The user is opening an Excel file that is of a previous version (97-2003). Now when the file is opened I noticed on the title bar it says [compatibility mode].

The data was copied over from another laptop. The data is stored on the root of C:. I just tried moving all the data into the users 'Documents' folder, thinking maybe its some Windows 7 security setting, but no difference.

When I try and save I receive the error about the File Block Settings and Excel advises me to change the settings. I have done that and ticked all the boxes, but this problem still persists.

So far I have tried un-installing Office 2010 completely and re-installing it and the problem still remains.
Also I have a similiar software setup to the user. I am running Windows 7 64bit with Office 2010 64bit. I don't get this error if I open this excel file on my PC. I also notice that I don't have the wording [compatibility mode] in the title bar.

I'm stuck. I followed the Knowledge Base 922850 but that didn't give me a solution.

I look forward to all your suggestions. Many thanks!
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Commented:
If you open an xls file in 2010 (or 2007) then you should see 'Compatibility mode' in the title bar.

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Commented:
I'm in the process of reading through all the knowledge bases.

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