Try this:
- Create the directory
C:\Windows\SysWOW64\config\systemprofile\Desktop
(for the 32-bit version of Excel/Office on a 64-bit Windows computer) or
C:\Windows\System32\config\systemprofile\Desktop
(for a 32-bit version of Office on a 32-bit Windows computer or a 64-bit version of Office on a 64-bit Windows computer).
- For the Desktop directory, add Full control permissions for the
relevant user (for example in Win7 & IIS 7 & DefaultAppPool set permissions for user IIS AppPool\DefaultAppPool).
Original post with answer: