Setup:
Sbs2k server sp3 20 user network (Mixture of NT4, 2K and
XP Pro machines).

Background:

Added a new user (standard Domain user security level)
using the add user
wizard and also configured the software to be installed in
the new
workstation then produced a new network setup disk.  I
added a brand new HP
workstation (XP Pro SP1) to the network. Configured it
using the "magic
disk" which installed messenger 4.6 and Outlook 2002.  The
login script took
care of the Trend Office Scan client installation.

Then I did a custom install of Office 97 Pro SR-1
(everything other than
Outlok 97).  Then I applied the Office 97 service pack.  
Finished off with a
Windows update of around 30 critical updates (left the non
critical ones for
a later date).

All seemed fine but then -

Problem:
When testing word, I found I could save locally without
issue, but saving to
a network share (with security set to everyone full
control from the root
down), word would hang, then give a message "There has
been a network or
file permission error. The network connection may be lost.
<Filename.doc>".

Examining the folder with explorer, the file had been
saved and there was
also a word temporary file, both of which could be opened,
trying to save
them again only bought about the same error message.

The same occured if I tried to save the document to a
folder with the same
permissions that was in the Trend server protect sacn
exclusion list - which
rules out anti virus interference.

I have also eliminated all causes mentioned in KB article
122379 WD97: Error
Saving Document: "Network or File Permission Error"

Have also tried applying patch for kb 328170 for xp shell
related issues

Any other ideas?