Ok got it working, seemed the virtual mem on the SQL server was limited to 2 Gig max (the server has 4 gig physical mem)...seemed as tho the buffer manager...

(still does not work with Excel tho)

I have changed the files to CSV and this works fine.....

oops sorry Mark......

HI SSC

The SQL server agent runs under local system account, this should have access to the machine..(the file is on local.

The directory that holds the excel files also currently has...