Office Compatibility pack not working with Excel 2003

[dans95w95]

I have a Windows 2008 Server and am running office 2003 SP3 with the Office compatibility pack installed. When I try to open or save any file to/from 2007 format, excel freezes up and in a few minutes, I get the following errors:

Microsoft Office Excel is waiting for another application to complete an OLE Action

and then:
The converter failed to open (or save) the file


Any help would be greatly appreciated



Thanks in advance !