Sounds like there are two separate instances of Excel running.
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"Lin4it" wrote:

I have typed = in Al in workbook 2 and then navigated to the required cell to
link to in workbook 1, then clicked enter. Nothing happens. On my other
machine the same process created a link between the two cells.

I than tried the same thing with a paste link but this did not work either.
Can anybody explain. Is there a setting somewhere that stops workbooks from
linking. I could link between sheets without any problem.