Excel 2007 data link update prompt

A user has recently upgraded from office 2003 to office 2007 on a Windows XP
SP2 machine.

This user used to receive a spreadsheet from a client via email to display
items ands costs, etc.

When opening up the file, the user received a message saying...
--------------------------------------------------
This workbook contains links to other data sources.
-If you update the links, Excel will attempt to retrieve the latest data.
-If you don't update the links, Excel will use the previous information.
Note that data links can be used to access and share confidential
information without your permission and possibly perform other harmful
actions. Do not update the links if you do not trust the source of this
workbook.
Update Don't Update Help
--------------------------------------------------

After clicking on Don't Update, the file opens up fine with all of the
correct data in.

However, we have upgraded this computer to office 2007. When opening up the
same email as before and the same excel attachment, no "data source link
update" prompt appears, and in place of the majority of where information
used to be, is cells filled with #NAME?

When highlighting each cell with these contents the formula bar states...
='C:\Program Files\Microsoft
Office\Office12\LIBRARY\pcas97.xla'!prodlookup("pe r",A22)

Why? What is causing this?

One other confusing thing is if the email is opened up, and we preview the
attachment in the email, the correct data is displayed, just like it was in
Office 2003, but this document needs to be printed out. If this is attempted
it opens up Excel and prints the file with #NAME? in the cells.

I've had a look in the options of Excel (i'm quite new to office 2007) to
find something to do with this link update prompt that appeared in 2003. I
found something that i thought was it, but it didn't work.

Any ideas on getting around this without reverting back to office 2003?