Consider this scenario - You have a site collection/subsite where you have enabled excel services and you want to deploy an excel web access webpart. So you go ahead, publish an excel file to a trusted location. Provide that URL to the excel web access web part and you are all set. Right? Wrong!
If you use the functions open in excel or open snapshot in excel, more likely than not you will get an access denied error. I also faced the same error and it was very puzzling because I was the site collection admin, site owner, the whole 9 yards. So I decided to go a little deep and found that to display the excel webpart, sharepoint uses dynamicimageprovider to provide content to this webpart. Everything ok this far, but the thing is that is somehow looks for the content under the root site collection layouts directory. So for eg. you site is http://webapplication/sites/site1/subsite, it is looking for content under http://webapplication/_layouts. How weird.
Anyways, this seems to be a problem with microsoft design with no documentation on this. There are two workarounds - One, use the excel web access webpart at the root level or Two, provide the people, who need the open in excel and open snapshot in excel functions, read access on the root site collection, i.e. http://webapplication.
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The solution of giving read access to the root site collection worked wonderfully! What was really odd in my case was that the root site collection is anonymous authentication, so I never thought to give explicit access to read. Not good enough for Excel Services... Adding the "All Authenticated" group fixed my problem handily.
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