I have seen a production system (which is still live) using much like Joel's suggestion 2 - a Windows 2003 server that uses Excel to produce reports (inside an otherwise Linux shop). It's fragile, no one wants to touch it, it's costly to migrate, but too used to deprecate. It dies about once a month and has to be restarted.

I guess it works (although the output isn't particularly good), but it's drained quite a bit of maintenance time and even more morale.