I hard linked file "XYZ" (cells have =drive/folder/file/cell formula in them)
to file "123" that is modify password protected. The users of "XYZ" have read
only access to file "123" from a folder level security aspect.

The link worked initially but now Excel just locks up anytime someone
chooses Update upon opening "XYZ" - even if the person opening it has Write
Authority to file "123"'s source folder. Is this occurring because "123" is
modify password protected and somehow messing with the link process or is it
simply "gremlins" in our Excel/server.

Thanks in advance,
Mike