Hi, Patricia,
I've retested using both Excel 2007 and Excel 2010 and, as long as you have your Excel Save setting set to .xls format, when you do an Excel Direct from GridView then select to save the Excel file created, it will default to saving as a .xls file. There is no need to have to select the File Type from Excel's Save As window.
GridView always honours the Excel settings.
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Regards,
Softrak Tech Support