I have had a similar issue. In my case it was due to linking files
over various network drives. The way I fixed it was to open both
workbooks... then in the workbook with the links to the password
protected workbook, go to Edit- Links.

Click on the password protected workbook and click change source.
Find the password protected file and click ok.

see if that helps

On Jun 25, 8:20*am, Dez wrote:
Hi, hope someone can help me. I was using Office 2000 and started using
Office 2003 recently and have since encountered this problem with Excel:
I have workbooks which are password protected that contain links to each
other. My settings a Edit Links Update Automatic ; Update Remote
References box is ticked. My problem is that even though password protected
workbooks are open at the same time, if I capture data into the source
workbook, the resulting data does not automatically update in the destination
workbook, and also, if I want to edit a formula containing a link, in either
workbook, it asks for the password of the open workbook. I didn't have this
problem in Office 2000 and don't know how to get around it!
Please someone help me...
Thanks