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The issue is related to how Excel is embedded in a hosted instance of Internet Explorer (which is what Ultra Recall uses for the internal browser view).
When Ultra Recall displays a .doc file internally, it is displayed using Word hosted by Internet Explorer (which is hosted by Ultra Recall). If you then launch this word file externally, it is displayed in an external instance of Word (and it is no longer displayed in Ultra Recall). This all happens automatically with no direct intervention by Ultra Recall.
This doesn't occur the same way with Excel. When an .xls file is being displayed internally in Ultra Recall, all external instances of Excel are unusable. Ultra Recall has no control over this behaviour (which is simply a difference between how Word and Excel behave when hosted by Internet Explorer). My speculation is that this difference is probably due to the sharing/locking capabilities of Excel but that is only a guess.
The solution is to either do your viewing/editing of Excel files externally or internally (but not both). Related to this, either remove .xls from the "File extensions to display in internal browser view" list found at Tools | Options | Browser <tab> and launch them externally to view/edit, or just edit them internally and don't launch them externally.
Sorry for the long response, but it required significant detail to fully explain what is occuring...
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