Zendada, thank you for all the suggestions.

I think I figured it out.

Here is what happened:

I had that DTS package running on my local server. Everything ran fine, data was loaded into excel, and sent out properly.

I was then asked to implement the same thing on the production server. I did. But when I manually ran the DTS package on the production server, for some reason, the data never changed there [which is why i made the post]. I then tried to delete the data, which also failed, as I specified ... or did it?

I looked back at my LOCALfolder and saw that the data was deleted there ... on my LOCAL server.

I then went back to the Production server, scheduled the 'delete table' DTS package as a job, and ran the job ... and voila ... the data got deleted on my Production server Excel spreadsheet.

So, it seems, that when I ran the PRODUCTION DTS manually (while being on my local machine), the DTS was looking at the excel spreadsheet on my local drive [locations between production and local are identical, which is why i did not catch this problem earlier].

So, I'm assuming that if I would login to the production server and run the DTS from there it would work too ... just as scheduling and running the job ...