import spreadsheet error: "Automation server can't create object"

When importing an excel spreadsheet in Sharepoint, the following error pops up in a web dialog with the 开发者_高级运维following message-"Automation server can't create object". What is wrong? does office needs to be installed to import spreadsheets or will installing the primary interop assemblies for Office fix this issue.

Thanks

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I think Office must be installed in the server, and the xls version must not be newer than the server's version