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My brand-new install of Word 2007, which had been working just fine, suddenly refused to save any files. I'd hit Ctrl-S, and it wouldn't complain but it wasn't saving. Then upon exiting, Word would ask if I wanted to save. I'd click on Yes, and the same pop-up would appear, endlessly, until I chose Cancel. Also, on opening files, Word gave an error message about not being able to access a TEMP file. Exact wording: "word could not create the work file - check the temp environment variable".

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I searched all over, including here, and nothing people said to do was the problem. But they did cause me to look at the folder C:\Users\MyUserName\AppData\Local\Microsoft\Office (where of course MyUserName is my user name). The folder was encrypted. I decrypted it, and -- bingo! -- Word worked perfectly again. This was on a 3-year-old laptop with a fresh disk re-image (OS=Win7) from the helpdesk at work. Weirdly, that folder is encrypted on my desktop at work, and everything works fine there. This fix is so easy that people may as well try it before any of the other proposed fixes. –  dmm Sep 26 '13 at 18:11
    
Glad you figured it out, please post that as an actual answer. :) –  Ƭᴇcʜιᴇ007 Sep 26 '13 at 18:17
    
I can't. Reputation=1. I had it at stackexchange, but they forced me to move it here. –  dmm Sep 26 '13 at 18:19
    
Oops, I just realized I meant "StackOverflow." Ironically, even though they closed it there as "off-topic", it has accumulated 1685 views there. I guess a lot of people searching their site think it IS on-topic. Anyway, SuperUser has it now. Hopefully it will do its part to drive traffic here for other systems questions. :-) –  dmm Jan 21 at 4:24

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A look at the folder C:\Users\MyUserName\AppData\Local\Microsoft\Office (where of course MyUserName is my user name), showed that the folder was encrypted.

I decrypted it, and -- bingo! -- Word worked perfectly again. This was on a 3-year-old laptop with a fresh disk re-image (OS=Win7) from the helpdesk at work. Weirdly, that folder is encrypted on my desktop at work, and everything works fine there.

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LOL! I just passed 1000 views on this question, and NO LIKES WHATSOEVER! –  dmm Oct 6 at 22:55

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