fixed! okay heres the low down ...
im using apache2 and it seems the default mime.type for xls files is now application/excel (so i got it working by commenting out this line in my mime.types file in apache config dir and added one for application/vnd.ms-excel
you might want to add this extra application/excel in the next release of phpdig - given more and more users will be on apache2
thanks for your prompt help