Now I'm evem more stumped. I finally had a minute to revisit this problem and Excel 2010 (which we just converted to maybe 2 weeks ago) is behaving as expected. The only thing that changed was I completely shut down all apps and logged out of my account as I do every night but to answer your questions.
1. I was able to see cells selected in other workbooks.
2. The black border did not appear around the cells.
3. I'm not sure if it had anything to do with the styles but I don't recall changing styles.
4. It was an .xls file. I've noticed that in 2010, unlike 2007 it appears to be defaulting to .xls versus .xlsx like what I was used to in 2007.
I do recall reading something about how many people had complained about some sort of compatibility issue with 2007 and pre 2007 documents and that MS was considering going back to the old formats. You would probably know better than me.
Bottom line for now is the problem has gone away. If it happens again I'll try to capture more diagnostic info.
Thanks alot for responding to my request...Take care,
Bob B.