My guess is that you (or your network administrator) have redirected your "My Documents" folder (which normally is your default save location) to a network location, and, for whatever reason, that location is not available. You might be working on a laptop at home that doesn't have access to the LAN at work where the folder is redirected to (that is what is going on with MY computer). Or maybe your "My Documents" folder has been redirected to a mapped drive that didn't map (network down? server down? somebody accidentally changed the login script?)
Or, more directly, when you initially set up Excel, you specified a now-unavailable location for your server drafts. (Under Excel 2007 options, look at the Save subgroup. The server drafts location is probably showing up as blank with you get this error, though, if you had access to the originally specified drive, it would show up.)
To fix the problem, go to Excel Options, access the Save subgroup of options and specify locations that you currently have access to at the "Default Save Location" field and the "Server Drafts Field". The only problem with this solution is that you will have to toggle these settings back if you want to keep the original location if and when it becomes available again.
Annoyingly, apparently Office 2007 apps won't let you save any options at all if they think that one of the options that you have specified is somehow "wrong" or "incorrect" (from their point of view!)
Again, I don't know for sure if this is the problem, but it seems likely to me.
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