In Excel 2003, you change the number of recently used files listed in the File menu by going to Tools > Options > General tab and editing the number in the "Recently used file list:". The maximum if 9.
In Excel 2007, the new recently used file list is probably one my most favorite updates. Instead of just listing the files, you can also "pin" the files that you use all the time so that they remain in your list. This change in Excel 2007 was actually an upgrade.
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