And look at the explanation:

"You need to remove the existing data, using the Excel automation model, copying a blank spreadsheet onto the target spreadsheet, or executing a drop table, create table on your spreadsheet."

"Copying a blank spreadsheet" means not removing data from a spreadsheet but removing old spreadsheet and replacing it with new (empty) one.

Than - "executing a drop table, create table on your spreadsheet" - have you seen words "truncate", "clear" or their equivalent here?

And in fact it's not possible to truncate data from Excel spreadsheet using DTS package. It can only drop and recreate it.

I would propose next question to this category:

If there is any difference between keywords "drop" and "truncate" in terms of SQL Server?

Answers: YES, NO.

To Steve Jones: which answer would you choose?