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Default using a dynamic named range in a VLOOKUP

I have the following IF-ISBLANK--IFERROR--VLOOKUP formula:
=IF(ISBLANK(F218),"",IFERROR(VLOOKUP(F218,'Categor y
Lookup'!$A$1:$B$983,2,FALSE),"New description to be categorized")) (I'm
using XL 2007, hence the IFERROR function...)

I want to replace the table array in the VLOOKUP with a dynamic named range.
I have a dynamic named range, LookupRange3, which uses the formula
=OFFSET($A$1,0,0,COUNTA($A:$A),1) in the Refers To field, which formula I
retrieved from http://www.ozgrid.com/Excel/DynamicRanges.htm

So now my formula looks like this:
=IF(ISBLANK(F218),"",IFERROR(VLOOKUP(F218,LookupRa nge3,2,FALSE),"New
description to be categorized"))

Unfortunately, this returns "New description to be categorized" rather than
the appropriate lookup value. Ideas?
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