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Default conditional format error Excel 2007

I am trying to use conditional formatting to display a different number of
decimal places in a result based on the value of another variable in the same
worksheet. The data to calculate the result is entered in a separate
worksheet. The idea is that if the variable is less than a certain value
then one less digit is diplayed. This is triggered by the conditional format.
Otherise the default number of digits (ie one more) is displayed.
This seems to work fine where the data is input in the same worksheet but
where the input is in another worksheet as in my case then if the conditional
formatting is invoked the format of the cell does not change (revert to
default) if the variable rises above the target value.
F9 has no effect but if you delete a blank cell in the worksheet this
triggers the change. Recalculation is set on automatic.
Any ideas?
 
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