Managing Excel execution through DTS

We have a convoluted DTS package. The package is stored and scheduled to run on database server1. Within the package we:
Make a connection to database server2
Execute a Process Task to execute EXCEL.EXE that is installed on server3
Pass parameters through the Process Task direct EXCEL.EXE to open a .xls file on server4
When the Excel file opens, an auto_exec macro in the Excel file being opened imports a text file local to server4 AND directs Excel to save it with another name on server4.

The questions are:
1. Excel is not installed on server1 so how do we direct Excel to execute on server3 rather than server1 where the DTS package is being executed?

2. And how do we control the security context that executes Excel through this use of automation?

3. Other than potential CPU competition, are there any significant issues with having Excel installed on a dedicated database server?Yikes! That is convoluted. Is there any particular reason you are doing things this way?|||Dude -

Are you into masochism? Enjoy sleepless nights?

Seriously - just pull the excel spreadsheet from the server you are reading from, open it on the machine with the dts package, do the manipulation & then copy the final result to wherever its going....

Dont make it any more complicated than it has to be - K.I.S.S.

Simple = Robust.

Cheers,|||Why do you have 4 servers in this scenario when you just want to modify some data on another server than where the DTS-package is situated?

What kind of data does this file contain, and why does it have to be updated via Excel?