I think this bug has reappeared in Karmic 9.10. 
I get slightly different symptoms:

When trying to open an Excel XML 2003 file I get "General Error. General
Input/Output Error"

When trying to save a new blank spreadsheet using Excel 2003 XML format
I get "Error saving the document Untitled1. Write Error. The file could
not be written."

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Can't open an Excel 2003 XML file
https://bugs.launchpad.net/bugs/32502
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