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I am trying to access xls file from the disk from sql server stored proc, it is working perfectly in dev. enviornment (win xp (x86) / SQL server 2008) but it provides me error as

Microsoft.Jet.OLEDB.4.0' provider is not registered on the local machine

A: 

There is no 64-bit Jet OLE DB Provider. From Microsoft Connect:

The behavior you described is expected. If your application runs in 64-bit mode, all of the components it uses must also be 64-bit. There is no 64-bit Jet OLE DB Provider, so you get the message described. You would receive a similar error when trying to connect to a database using OLE DB or ODBC if there is no 64-bit version of the specified OLE DB provider or ODBC driver.

You can install a 32-bit version of Sql Server on a 64-bit Windows operating system. The 32-bit version would be able to use the JET OLE DB provider.

To my surprise, I have been unable to find an alternative OLE DB driver that allows you to read Excel files in 64 bit mode. Hopefully I'm missing something, this would be a failure nearing 1.0 on the Vista scale.

Andomar
In 64-bit, there's neither an ODBC nor OLEDB version of JET. I wouldn't expect a bridge from OLEDB to ODBC to fix that.
Andomar