ANSWERS: 1
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What are the properties of your embedded worksheet / workbook? If the file contains protection that doesn't allow changes to the worksheet (or structural changes to the workbook), then you have to modify that before you insert it, or enable the modification to be made to the inserted file. I've just verified this for myself with a test file. If I insert the object file "with no sheet protection" then I can do as I like with it. When I insert the saved object file with worksheet protection already enabled, then I have the same situation you encountered. I also verified that it is possible to remove the worksheet protection from the inserted object file even if it had been inserted with protection enabled. Normal functionality applies when you double-click and open the embedded file.
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