Excel & Hyperlinking with Sharepoint

I have a tracking document in Excel that has each entry linked to another place on Sharepoint to locate files and intranet articles. There are no formulas or other complex entries....just text and hyperlinks.
If I open the Excel file in Sharepoint and edit it there, we have no issues.
If I download the Excel file to my desktop...all links to other files are broken (the intranet file links remain active). When I try to access the link I receive a pop up window that states, "Cannot open the specified file."
This is a file accessed by multiple people and used as a resource, there are well over 100 linked entries and the group would like to be able to use the file on their desktops.
I have already found and unchecked the "Update Links on Save" option. This now allows me to download the file to the desktop, have no access to the links, and then upload it where I can then access the links again.
Is there any way to preserve the links so they can be accessed on the desktop?
Software Specs
Windows 7
Office 2010
Explorer 8
Thank you,
Christine

The links are absolute. All links are to our internal team site or to our intranet. The intranet links aren't affected.
This wasn't an issue before the company upgraded us to Windows 7/Office 2010.
The links are established (right click, select Hyperlink, copy/paste from browser) while the Excel file is on the desktop and all work fine there. The Excel file is then uploaded to Sharepoint where the links continue to work. When the Excel file is
downloaded to the desktop again...all links are broken. If I re-upload it to Sharepoint though, it is fine.
I double checked the actual link. It reads the same on the desktop initially as it does on Sharepoint. When the file is downloaded to the desktop again it seems to be missing the first half of it. What function could be editing the link?
Christine

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