MS Office 2008 Mac: excel file may be damage or modified from its original format

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Problem Description:

Users get following message accessing read-only Excel files from our File Server. After clicking "read-only" button, after few seconds the following message comes up...

"Excel cannot open this file: The file may be damage or modified from its original format"

Environment:

Users using MS Office 2008 for Mac. Running Intel Macs most 10.6.8. Problem initially arose with Windows user (Vista) who created read-only, password protected Excel file on her PC. Later, Mac users reported same problem with with Excel files created on Mac. There is no previous occurrence of issue with same files users had been using. Ran latest MS Office 2008 updates.

Any feedback would be appreciated. Thanks!
 

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