The reason your code is not executing properly is because you are attempting to execute a macro on a password protected execel file, which is not permitted. This is due to the fact that macros will not execute on an excel workbook until the password is entered - thus the prompt for a password before you can execute your macro code. This SO article explains this as well, with greater detail: Excel VBA - Automatically Input Password. If you are trying to access the workbook. not the worksheet, there are a variety of ways in versions 2003 and earlier.
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After a quick perusual, this blogspot Code Samples entry appears to have a working version for unprotecting a 2003 workbook. Also, on a related note, if you are stepping back even further and trying to unlock a VBA project, this SO article appears to adequately address the issue. If you are simply trying to "brute force" unprotect a client's workbook, a gentleman named Jason has outlined such a process in his blog.