Too Few Rows in New Excel Workbook
In Excel 2007 and Excel 2010, when you create a new workbook, there should be 1,048,576 rows on the worksheet.
However, one of my clients was creating new files in Excel 2007, and the sheets only had 65,536 rows, just as they did in older versions.
Perhaps you don't need more rows than that, but if you've paid for a shiny new version, you'd like access to all of its features!
Solve the Too Few Rows Problem
At first, we thought the problem might be an old Excel 2003 template, that was starting automatically, and being used for the new workbooks. A search of all the Templates folders didn't turn up any suspects, so that theory was wrong.
Finally, we discovered that the default format for saving files was set to Excel 97-2003 Workbook (*.xls).
To get the full-sized Excel 2007 worksheets, go into the Excel Options, and in the Save category, select one of the newer formats as the default for saving files.
Click OK, to close the Options window, and when you create a new workbook, its sheets will have 1,048,576 rows.