Storing files in your desktop folders is not a good idea - You should only have shortcuts.Why? That simply is not the reality in the real world. I know numerous users that live entirely out of their Desktop folder. Perhaps a best practice, from an IT perspective, but certainly not a functional requirement by any means.
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This topic area includes legacy versions of Windows prior to Windows 2000: Windows 3/3.1, Windows 95 and Windows 98, plus any other Windows-related versions including Windows Mobile.
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Does this happen with all workbooks or just this one in particular?
Have you rebooted the computer?
Have you tried performing an Office Repair?
What Excel build are you running currently? Have you tried manually updating or revert the build?
Have you tried uninstalling/reinstalling Office?