Office 2007 - can't save new files

[deerslayer]

I recently installed SP2 for Office 2007 on my XP Home laptop. I thought
all had gone well until a couple of days later. Trying to save a
newly created spreadsheet or word document ends up hanging the system
(perpetual hourglass). I've Googled and see this and similar issues cited
but I haven't found an adequate solution. I did uninstall SP2 (the problem
persisted) and then reinstall SP2 (the problem persisted).

Any help/suggestions will be much appreciated. As it is, I can only view
and resave current files. I can't create and save a new file in either Word
or Excel (I haven't tried PowerPoint, Access, or Publisher etc).

 

[DL]

Presumably you've run Office Diagnostics?

 

[deerslayer]

Yes, I've run office diagnostics. Nothing out of the ordinary reported.

 

[DL]

Boot your PC into safe mode, then create / save a word doc, is it ok?

 

[deerslayer]

No its not. Booting into safe mode and attempting to save a doc file gets
the same results... perpertual hourglass.
Still looking for a solution.