MS Word 2004 appears to have a problem when saving documents to network Home folders.
Users with network home directories may save their files OK the first time they save it, but subsequently see an error message saying "Word cannot save this document........"
The fault occurs unless a folder called .TemporaryItems has been created at the root level of any mounted volume containing the saved file.
If the user's home directory is contained in an AFP share called "Students", there has to be a folder called .TemporaryItems in the Students folder on the server.
If the home directory is on another local volume called Data, there has to be a folder called .TemporaryItems at the root of that volume.
Since .TemporaryItems is a dot file, it will not be visible in the Finder. (Try using Invisibility Toggler to see invisible files and folders.)
When the application is able to create this .TemporaryItems directory, it is writable by everyone.
To create a .TemporaryItems folder in Terminal:
cd /path/to/volume/or/sharepoint (Drag folder from Finder)
sudo mkdir .TemporaryItems
chgrp staff .TemporaryItems
chmod 1770 .TemporaryItems
See also the Apple Knowledge Base article about this issue.
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