UPDATE:

In addition to the above, I ran a test.

Hyperlinks to a file in the same directory as the .xls file work fine.
Hyperlinks to any directory on another drive work fine
Only hyperlinks to another directory on the current drive are a proble,, and
only those created with Excel 2003. (Hyperlinks created in Excel/Office 2000
also work fine regardless of their location).

Olease help, this is driving me nuts.

Steve