Is it possible to query a table that is located inside Excel's worksheet? Specifically I am looking for SQL like SELECT and all it's features (sorting, grouping, filtering etc.)
Is it possible to display the result in a different worksheet and dynamically bind the two?
Sound like MS Query might be the tool for you. Basically it is a tool that connects to various external data sources from MS Office, and it can also connect to Excel from Excel. In Excel 2010 things get easier, but you are using 2007.
Check this or this or Google to find various examples of how to implement this.