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Default Excel 2000 on WTS 2003 and local Excel links don't update

I have a query if the following is expected behaviour

I have a Windows Server 2003(sp1) with WTS installed and Excel 2000(sp3)
installed. Users access this via an RDP session and they have a home drive.

The client PC has a local installation of Excel 2000(sp3) , the client PC
has a number of network shares to many spreadsheets, these network shares are
also available in the WTS session.

The user wants to be able to have links in workbooks saved on the network
shares aviailable in the WTS Excel session when the workbook is open in the
local copy of Excel, they say the update does not work until all the files
are closed and re-opened.

Is this normal behaviour and why?
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