(OPENROWSET) Server: Msg 7399, Level 16, State 1, Line 1 OLE DB provider 'Microsoft.Jet.OLEDB.4.0' reported an error. Authentication failed.

Can some one tell me how to resolve this issue???? I am using sql server 2000... the procedure that I use is as below....
Server: Msg 7399, Level 16, State 1, Line 1 OLE DB provider 'Microsoft.Jet.OLEDB.4.0' reported an error. Authentication failed.
/************************************************************************************************************************************************/
Create PROCEDURE MCA_SP_CREATE_EXCEL @File_Name as varchar(50) = ''
AS
BEGIN
SET NOCOUNT ON
declare @File_Name as varchar(50)
DECLARE @Cmd varchar(1000)
DECLARE @fn varchar(500)
DECLARE @provider varchar(100)
DECLARE @ExcelString varchar(100)
-- New File Name to be created
IF @File_Name = ''
Select @fn = 'C:Test.xls'
ELSE
Select @fn = 'C:' + @File_Name + '.xls'
-- FileCopy command string formation
SELECT @Cmd = 'Copy C:Template.xls ' + @fn
-- FielCopy command execution through Shell Command
EXEC MASTER..XP_CMDSHELL @cmd, NO_OUTPUT
-- Mentioning the OLEDB Rpovider and excel destination filename
set @provider = 'Microsoft.Jet.OLEDB.4.0'
set @ExcelString = 'Excel 8.0;Database=' + @fn
-- Executing the OPENROWSET Command for copying the select contents to Excel sheet.
exec('insert into OPENrowset(''' + @provider + ''',''' + @ExcelString + ''',''SELECT FirstName,LastName,Phone,Address,City,State,Zip FROM [Sheet1$]'')
select au_fname as FirstName,au_lname as LastName,phone,address,city,State,Zip from pubs.dbo.authors')
exec('insert into OPENrowset(''' + @provider + ''',''' + @ExcelString + ''',''SELECT StoreId, OrderNo, OrderDate, Quantity FROM [Sheet2$]'')
select stor_id as StoreId,Ord_Num as OrderNo,Ord_Date as OrderDate,qty as Quantity from pubs.dbo.sales')
SET NOCOUNT OFF
END

Can you actually use INSERT INTO OPENROWSET? News to me - but then I'm a SQL 2000 kind of person.[;]
Anyway, the error message states that the problem is with authentication. IIRC, in SQL 2005 you need to set permissions to get xp_cmdshell to work.