PROBLEM SOLVED (if your excel doc doesn't link to other excel docs)!
Here is what I have learned:
The problem arises because of:
1. Links to other excel spreadsheets in your excel spreadsheet AND/OR
2. Broken references in your excel doc
Aka, it all has to do with links/references in excel.
If your excel spreadsheet has that error box (cannot update links or something) that comes up when you open it, the one that also shows up when the links in word update, you need to work on getting that box removed in excel, so that when you open
excel, there is no error box.
The word linking problem will not disappear until excel opens cleanly with no message box.
For me, I had to disable links to other spreadsheets (they were old and not used any way), and, delete old cell references for names unused.
If your excel spread links to other spreads and you need that, I am not totally sure what to do, but you can mess around with the links to make that error box go away (research that part).
To remove the links to other spreadsheets:
1. In excel, go to data--> edit links.
2. For me, I disabled all links to other spreadsheets because I don't need them. If you need them, research how to make the error message go away while still linking (sorry, I don't have the answer for that part but it should at least give you enough
to get started researching). It may simply be making sure it is referencing the correct spreadsheet and correct folder (check to see where the folder it is referencing is)
To remove the cell reference errors:
1. In excel, go to "Formulas-->Name manager
2. Filter--> names with errors
3. Delete all the names with errors (it is my understanding these are bad links. Aka, referencing cells that don't exist. You may wish to check up on this a little more before deleting this. I once used an old software with excel VBA and since I
removed the software, it was still referencing bad links. But once you delete them here, I believe they are gone forever.)
Hope this helps. My excel spreads now open cleanly and my word linking problem has gone away! Now I just have to figure out how to have word handle my 60 MB docs. Arrr...