When I copy information from excel and do a paste special picture (enhanced metafile) all of the gridlines from excel are being pasted as well. This problem just started in July and is creating terrible headaches for us. Does anyone know how to fix this?

Not entirely but have had the same headaches. Word and excel handle grid lines differently! (Word uses a table) and excel's are inherent.
however I cured this by tuning off the grid lines in excel in the printer area (I cant remember exactly where) and thus when they were copied and pasted WORD then accepted the spreadsheet as a 'table' ,I use 2003 and I do not know 2007! (to me it sucks!)
BOL
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You could just PASTE and in word remove the grid lines from the table created by the paste. (As in Borders None)