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Default Excel 2003 problem

I hope I can explain this so that someone can understand my problem - I'll do
my best: in our office we have a wireless network that connects us and we
all share some documents out on the server. We have been experiencing some
problems when opening up some of our shared files. For example: we have a
file named "land log" and say Kelsey has it opened and is making some changes
to it. Then I come along and open it and it should come up as a "read only"
file but for some reason it's letting me make changes to the files at the
same time as Kelsey and then the file becomes corrupted.

My question is why does it allow 2 people to make changes at the same time?
Also, just today, Kelsey went to open the file and it came up as read only
but nobody has it opened and then the file was corrupted?
 
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