Openrowset Error

Hello All,

 When I execute the following query I get the error:

SELECT * FROM
OPENROWSET
(          
            'Microsoft.ACE.OLEDB.12.0',
            'Data Source='C:\Test.xls;Extended Properties="EXCEL 12.0;HDR=YES"',
            'SELECT * FROM [Test$]'
)

OLE DB provider "Microsoft.ACE.OLEDB.12.0" for linked server "(null)" returned message "Could not find installable ISAM.".
Msg 7303, Level 16, State 1, Line 1
Cannot initialize the data source object of OLE DB provider "Microsoft.ACE.OLEDB.12.0" for linked server "(null)".

The sql server is SQL Server 2008 on a 64 bit machine.

The same query when I used in 32 bit machine , I get the following error.

OLE DB provider "Microsoft.ACE.OLEDB.12.0" for linked server "(null)" returned message "Unspecified error".
Msg 7303, Level 16, State 1, Line 1
Cannot initialize the data source object of OLE DB provider "Microsoft.ACE.OLEDB.12.0" for linked server "(null)".

The below configurations are alrady made in both the servers.

1)Allow adhoc distributed queries to 1 by running sp_configure

2)USE [master] 
GO 
EXEC master.dbo.sp_MSset_oledb_prop N'Microsoft.ACE.OLEDB.12.0', N'AllowInProcess', 1 
GO 
EXEC master.dbo.sp_MSset_oledb_prop N'Microsoft.ACE.OLEDB.12.0', N'DynamicParameters', 1 
GO 

3)Read and write permission given on the temp folder of SQL service account for the login.

4)We have observed that if the server is restarted, the error goes away and comes back again after a few minutes.

5)We have installed on Access database engine on  both the servers and not the entire MS Office. on 32 bit machine, we have installed Access database engine of 32 bit and on 64 bit , 64 bit engine.

I have working on this issue for the last 5 days with no luck. Any help on this would be really appreaciated.

NOTE:- I tried running the query even under the service account under which SQL service runs giving sysadmin privilege on that login. Even that did not work.

Thanks for your help!