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Default Unexpected error has occured - AutoRecover has been disabled

Hello

This has been happening to a user on every Excel worksheet she opens. This
pops up "Unexpected error has occured - AutoRecover has been disabled for the
session of excel"

She has been recently upgraded to Office 2007 SP2 running on XP SP3. I
checked online "google" and it says to change the place where the
autorecovery is saved. I did that but it is still happening.

Please let me know what I am doing wrong.

Thanks