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Default Excel Automation using OLE

I'm trying to open and process data in xlsx format from another application using OLE concept.

Here is my problem.

When I open and try to save data which is more than 65k in an excel using below code, excel is unable to save more than 65k.

ConnectToNewObject('excel.application')
Application.Workbooks.Add()
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But, if I try the below code, I'm able to save more than 65k rows in excel.

ConnectToNewObject('excel.sheet')
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The machine has MS Excel 2007 installed.

Can any one explain this behaviour.
 
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