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Default Document Recovery Stuck

Greetings,

I have Office 2007 installed and licensed for 5 years on a terminal server.

The challenge I have is I have a Document Recovery in the Administrator that
shows up for all users (access denied to file mind you).

As the admin I tried to the following:

Open the recovered file.
Click the round Office button at top left.
Click the "Excel options" button.
Click the Save button at left.
Check the box "Disable AutoRecover for this workbook only".
Click OK.
Save and close the workbook.

However the second time I open Excel, the Document Recovery pops up again.

I've deleted the contents of Temp and Internet Temp.

I've set the Internet Temp to a new folder that authorized users will have
full control over and have yet to redirect via gp the cache to that folder
for all users. Somewhere I had read that Office uses the same cache?

Any suggestions on how to make this document disappear?

Regards,
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