I was able to come up with this clumsy hack to my own post that worked for a couple documents. Would be interested if someone with more knowledge understands why this works and if there's a better solution. Seems it might be related to the OLE Object linking, but I have no clue and it's above my knowledge.
Open the .doc in Word 2010 and save as .docx.
Create a copy of the .docx file and rename the .docx extension to .zip.
Open the .zip file using WinZip (assume other compression tools will work as well)
Navigate to the word/embeddings file to view the embedded .xls files. (normally, you should be able to open the extracted files directly in Excel, but they don't open or crash Excel in this case)
Drag and Drop the .xls files from the zip interface to a desktop folder.
In the .docx file that was saved earlier delete the original .xls files, then use the Insert->Object->Create from File and Browse the where the new .xls files are located and select the first .xls file. Select the Display as Icon option and OK. Do this for each of the remaining .xls files.
The newly embedded .xls file should now be readable within Word.
Read it:deleted by moderator