No, it doesn't do the same thing. The Word 2002 instructions are 99%
identical to Word 2008, so I don't know how you got off track, but you
did. You can recheck the "automatically correct spelling" box.
With the cursor in a problematic word, click on Format | Style. Click
Modify. UNCHECK automatically update, and CHECK add to template. OK
everything and exit back to document. If the problem occurs in other
documents, repeat the same procedure.
It is possible, depending on how the doc is formatted, that you will
need to repeat this procedure for more than one style in the same document.