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Default '07 Large Operation Error (Delete / Insert Rows and/or Columns)

Help! I was so excited to have '07 until...
I have a very simple worksheet in a work book -
This very simple worksheet takes up 78 rows and 16 columns. Minimals
formats / formulas etc.
I would like to insert additional rows but I get the error message which
says "Large Operation. The operation you are about to perform affects a
large # of cells and may take a significant amount of time to complete. Are
you sure you want to continue? Note: This operation will be performed in 60
seconds if no response is received".
I have tried to select "OK" as well as wait until my 60 seconds are up - and
then I get this error message: "Excel cannot complete this task with
available resources. Choose less data or close other applications".
I only have MS Office document open and that is this one - in addition to
Lotus Notes and 1 IE window.
Is this bizarre or what?!!?
 
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