If like you, you've been startled by the infamous "This list cannot be displayed in Datasheet for one or more of the following reasons" error while using Office 2010 on a SharePoint 2007, there's a good chance you're using Office 2010 64-bit. Yes, 64-bit is the caveat here, as it works perfectly fine with the 32-bit version of Office 2010.

 

There's no need to uninstall Office 2010 64-bit though. The solution, recommended by Jenny E from Microsoft, is indeed quite simple: download and install the Microsoft Office Access 2007 Data Access Connectivy Components, you'll be good to go!