I use Excel 2003 and have created two workbooks using Excel 2003.

One a workbook for standard users to input data. Therefore this is the
source book. Then created another workbook which links data to collate into
a report (refer to as destination workbook).

When the source and destinatation workbook are open the links work fine.
However if I only open the destination workbook and when prompted Update
links. All cells containing formula drawn from the source workbook appear as
#VALUE in the formula cell.

Can you let me know why this occurs and what I can do to prevent this. As
my understanding was when you open a linked destination workbook you can
update the links to the formulas recalc to show any changes since the
workbook was last opened.
Any thoughts on this gratefully received!