Best way is to save the file you want for the default as "C:\Documents and settings\<Username>\Application date\Microsoft\Templates\Normal.dot"
this will replace the blank page that usually appears!! (Recommendation: save the original Normal.dot somewhere else so you can reinstate it if need be!!)
Word always opens the default template file "normal.dot" ; so all you need to do is save the letterhead template and default format into the normal.dot template.
I would also recommend that you create a normal.bak to keep on the computer(s) as backup.
If you totally corrupt the file: normal.dot... just delete it. MS Word will automatically create a new blank "normal.dot" if it cannot find the file.
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thanks