The line of code Rows("1:1").Insert Shift:=xlDown will insert the row into which ever sheet is active
Did you try to activate the sheet or just the book - You may need to activate both of them
Another option is
Sub Val_Hit_Rate()
Dim wS As Worksheet
Workbooks.OpenText Filename:="t:\TmpRpts\HIT_SCR1.900", Origin:=xlWindows, _
StartRow:=1, DataType:=xlFixedWidth, FieldInfo:=Array(Array(0, 2), Array(8, _
9), Array(41, 9), Array(51, 9), Array(59, 1), Array(65, 9))
Set wS = Workbooks("HIT_SCR1.900").Sheets(1)
wS.Rows("1:1").Insert Shift:=xlDown
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