SQL 2012 :: OPENROWSET To Read In Data From Excel 2010 File (XLSX)

I have a test server (TEST1) running SQL 2012 and Windows 2012R2. One of the developers wants to use OPENROWSET to read in data from an Excel 2010 file (an xlsx file).

I have loaded the Microsoft Drivers in "AccessDatabaseEngine_64.exe" and enabled the Ad Hoc Distributed Queries option in SQL.

This is the sample code we are working with:

SELECT
X.MEMBID
FROM OPENROWSET(
'MSDASQL',
'Driver={Microsoft Excel Driver (*.xls, *.xlsx, *.xlsm, *.xlsb)};DBQ=etworkserverFolder1Folder2MEMBIDs.xlsx',
'SELECT * FROM [Sheet1$]'
) AS X

I can run the sample query from my laptop with SSMS (I have admin rights) and I can also run it as SA from my laptop. So all is good, right?

But if I RDC into TEST1, I cannot run the query. I get this error:

OLE DB provider "MSDASQL" for linked server "(null)" returned message "[Microsoft][ODBC Excel Driver] Your network access was interrupted. To continue, close the database, and then open it again.".
OLE DB provider "MSDASQL" for linked server "(null)" returned message "[Microsoft][ODBC Excel Driver]General error Unable to open registry key Temporary (volatile) Ace DSN for process 0x574 Thread 0xb74 DBC 0x1d07f08 Excel'.".
OLE DB provider "MSDASQL" for linked server "(null)" returned message "[Microsoft][ODBC Excel Driver]General error Unable to open registry key Temporary (volatile) Ace DSN for process 0x574 Thread 0xb74 DBC 0x1d07f08 Excel'.".
Msg 7303, Level 16, State 1, Line 1
Cannot initialize the data source object of OLE DB provider "MSDASQL" for linked server "(null)".But wait! It gets better.

I can run the query as SA from TEST1.

And of course, the developer can't run it either.

And it works fine in the production server.

I'm thinking the basics are there but something isn't right in some permission somewhere.