Word 2007 cannot save password protected file

[KenWL]

If I create a Word .docx file that is password protected (i.e., encrypted), I
cannot save it more than once.

I am running the released version of Windows 7, 64-bit; Office Word 2007 SP2.

Steps to reproduce:
1. Start with a new, blank document and type something in it.
2. Go to Prepare | Encrypt Document and type in a password.
3. Save the file.
4. Change the file (e.g., add one character).
5. Save the file again.

Rather than saving it, the "Save As" dialog pops up. If I save as the same
name, I get the following error:
"Word cannot complete the save due to a file permission error."

Any ideas?!

 

[KenWL]

^ Bump.

ANY ideas? This is a very frustrating bug.

 

[WayDS]

I represent a corporate user that is having the same issue although the file
is not encrypted. It will be a document that has been worked on and saved
several times in the recent past and all the sudden another save opens the
"Save As" dialog like Windows forgot where to save the file! Then sometimes
overwriting the file is fine but at other times it produces the error message
"Word cannot complete the save due to a file permission error.

The user is running Windows 7 32-bit enterprise and Office 2007 Professional
Plus and Trend Micro Worry Free Business, all with all the latest
patches/updates as of 2/24/2010. The file is stored on the local computer C:
drive (drive is not encrypted) in the My Documents folder.

This tends to happen randomly to more than just one file.