Al,
thank you for your detailed reply.
- I create xls file from scratch, then save it on local drive. Only DBFs are on network drive
- I set"Trust access to the VBA project object model" - no changes in speed
- disabled all antivirus and spyvare programs - the same slow speed
- all default and temp files folders are on local drive
- "is there any kind of remote desktop or desktop virtualization going on?" - no

I have no idea what else can I try...