This is a bug in xl97.
If you were using a CommandButton you could set the TakeFocusOnClick Property to False.
Since the ToggleButton does not have this property you will need to use the less preffered workaround of 
Activecell.Activate
as the 1st line in the code.

see:http://support.microsoft.com/default...&Product=xlw97

(If you run the ToggleButton1_Click() sub directly from the VBE as it stands it will run fine, the problem is when run from the sheet & the button has the focus.)