We are using Excel 2007 SP1. I am working with an Excel file (.xlsm, it
contains macros) that links to cells in another workbook that is in 2003
format. The master .xlsm workbook creates a new .xlsm file each week
(manually started via a button). I don't think this is important, just
sharing the information.

After the workbook is created, the cells look like this:

='\\server\folder\[workbook.xls]Tab Name'!A1

HOWEVER, after the new workbook is closed and reopened, the hyperlinks
change and look like this:

='local drive\folder\[workbook.xls]Tab name'!A1

We do NOT want the link to update to the local drive. I made the "Update
Links on Save" setting so that the box is un-checked, but either way it is
set, the link changes. This is happening for multiple people. I thought maybe
it was a problem with .xlsm files or something.....but i can't seem to find
anything related to issues with this functionality in Office 2007.