Agree Eric, that was my belief as well, first thing i did after I promised my customer that I have it fixed in no time :)
anyhow, it turns out that I had to add mimetype (application/vnd.ms-excel) to the extension .xls and .xlsx in the function:
BuildMimeArray()
located in CuteEditor_Files/Dialogs/Include_Mimetype.php
Now it runs smoooothly again.
Thanks!
/Bix