Word 2007 Error Message: "Word could not create the work file."

[Parry]

Hi,

I have started getting this as an error message on opening Word 2007.

"Word could not create the work file. Check the temp environment variable."

Am not able to save any word document. Also, on trying to close Word I get this error message;

"Changes have been made that affect the global template, Normal.dot. Do you want to save those changes?"

Have checked my environment variables, User Variables are set to as under;

Variable        Value
Temp             C:Documents and Settings/ABC/Local Settings/Temp
TMP              C:Documents and Settings/ABC/Local Settings/Temp

Also, the Value in the registry HKEY_CURRENT_USER >Software >Microsoft >Windows >CurrentVersion >Explorer >User Shell Folders >Cache is as %USERPROFILE%\Local Settings\Temporary Internet Files.

Pls assist in resolving this issue.