This is something I found for Excel 97 with the same problem maybe these tips will help you out.
Tools>Options>General uncheck “Ignore other Applications”
Exit Excel and try again
If this doesn’t work try to re-register Excel
Close Excel first and
On the Windows Taskbar
1) Start>Run “excel.exe /unregserver”(no quotes)>OK.
2) Start>Run “excel.exe /regserver”(no quotes)>OK.
See the space between exe and /regserver
You might have to designate a full path to excel.exe.
In that case Start>Run “C:\yourpath\excel.exe /regserver”(no quotes)>OK.
If these do not work try a registry fix if you feel comfortable doing so by:
For Excel, navigate to the
“My Computer\HKEY_CL@ssES_ROOT\Excel.Sheet.8\shell\Open\command” key.
The default entry should end with …\excel.exe %1″ and the fix is to remove the %1
Give these a try and see if they help any.