Virtualization

I have MS Office installed in User Machines which is not Viritualized application. I need to virtualize the 'Hyperion PlugIn' to install in user machine... I can not go with DSC coz the Excel is not a virtual application so I am following these steps in sequencing (I am using 4.6 Sequencer) 

  http://technet.microsoft.com/en-us/windows/dd459150

So when I installed my virtual application in client machine and launch the application I am getting this error (I have created a New shortcut during the sequencing according to the video mentioned)  

If I don't create any shortcut and launch the Excel application my plug in is not at all displaying... 

I tried like LOCAL_INTERACTION_ALLOWED=TRUE and FALSE both ways 

This is my OSD file 

<?xml version="1.0" standalone="no"?>
<SOFTPKG GUID="0003A7E9-5822-4788-BA4A-C406B3AF3F92" NAME="Microsoft Excel With Hyperion" VERSION="14.0.6024.1000">
<IMPLEMENTATION>
<CODEBASE HREF="rtsps://%SFT_SOFTGRIDSERVER%:322/Hyperion11/Hyperion11.sft" GUID="6C4AEE3F-2BB7-4048-BF8B-DF0EA57C7DFE" PARAMETERS="" FILENAME="%CSIDL_PROGRAM_FILES%\Microsoft Office\Office14\EXCEL.EXE" SYSGUARDFILE="Hyperion11\osguard.cp" SIZE="268236807"/>
<VIRTUALENV TERMINATECHILDREN="FALSE">
<POLICIES>
<LOCAL_INTERACTION_ALLOWED>TRUE</LOCAL_INTERACTION_ALLOWED>
</POLICIES>
<ENVLIST/>
</VIRTUALENV>
<OS VALUE="Win7"/>
<OS VALUE="Win764"/>
<WORKINGDIR>%CSIDL_PROGRAM_FILES%\Microsoft Office\Office14</WORKINGDIR>
<VM VALUE="Win32">
<SUBSYSTEM VALUE="windows"/>
</VM>
</IMPLEMENTATION>
<DEPENDENCY>
<CLIENTVERSION VERSION="4.6.0.0"/>
</DEPENDENCY>
<PACKAGE NAME="Hyperion11"/>
<ABSTRACT/>
<MGMT_SHORTCUTLIST>
<SHORTCUT LOCATION="%CSIDL_STARTMENU%" FILENAME="" OVERRIDDEN="TRUE" DISPLAY="Microsoft Excel With Hyperion" ICON="%SFT_MIME_SOURCE%/Hyperion11 Icons/Microsoft Excel 14.0.6024.1000.ico"/>
<SHORTCUT LOCATION="%CSIDL_APPDATA%\Microsoft\Internet Explorer\Quick Launch" FILENAME="" OVERRIDDEN="TRUE" DISPLAY="Microsoft Excel With Hyperion" ICON="%SFT_MIME_SOURCE%/Hyperion11 Icons/Microsoft Excel 14.0.6024.1000.ico"/>
<SHORTCUT LOCATION="%CSIDL_SENDTO%" FILENAME="" OVERRIDDEN="TRUE" DISPLAY="Microsoft Excel With Hyperion" ICON="%SFT_MIME_SOURCE%/Hyperion11 Icons/Microsoft Excel 14.0.6024.1000.ico"/>
<SHORTCUT LOCATION="%CSIDL_DESKTOPDIRECTORY%" FILENAME="" OVERRIDDEN="TRUE" DISPLAY="Microsoft Excel With Hyperion" ICON="%SFT_MIME_SOURCE%/Hyperion11 Icons/Microsoft Excel 14.0.6024.1000.ico"/>
</MGMT_SHORTCUTLIST>
<MGMT_FILEASSOCIATIONS>
<PROGIDLIST/>
<FILEEXTENSIONLIST/>
</MGMT_FILEASSOCIATIONS>
</SOFTPKG>

As suggested even tried with SP3 patch updated sequencer but same problem!! donno wer I am doing wrong

Could anyone Provide me some suggestions please