EXCEL & NETWORK

Using Excel 2000...
I've got a problem with using excel over a network. I've got a master
workbook and various departmental workbooks that reference this master
workbook via the vlookup function in excel. All of these workbooks are saved
on my manager's network drive on her computer. The problem is that when the
master workbook and any one of the departmental workbooks are open, my
manager and I both see pathnames (the effect being that changes in the master
workbook are not referenced via the vlookup function immediately, and, in
fact, when opening any one of the departmental workbooks we both get a 'File
Not Found' message and must locate the workbook even if it is already open):

=VLOOKUP(B5,'\\PSmith\Accounting\Documents and Settings\psmith\My
Documents\Accounting\BUDGET 2005-06\Employees by Dept\[Payroll
Database.xls]SAI'!$B:$I,2,FALSE)

If I delete the pathnames while using my computer, my manager still sees
them. If my manager deletes them from her computer, I still see them. Any
help, please?