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Issues saving files in Office 2007

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Running XP SP3, Windows Server 2003, students unable to save documents on laptops in mobile lab, works on desktops. This is a school environment, students using various computers in lab. When attempting to save nothing happens, no errors etc. and file is not saved

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by skjer

Windows 2003 server, desktops lan connected, laptops wireless.
Running Symantec Antivirus.
XP on pcs, just updated to SP3, Office 2007, IE8.
Issue began after the updates and server that originally held profiles/login scripts crashed and everything moved over to new server.
GP has folder redirection to users home drive,
Unable to change the save location in word, get error message "The setting could not be created" - currently it points to a folder in Docs/Setting on PC want to save to network.
I went to Start/Run/ winword.exe /a and save function works fine.
Any ideas on what I need to do to correct?
Thanks

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