The file is corrupt and cannot be opened

[Conor]

We are looking to rollout Office 2007 from Office 2003. We will be forcing
Office 2007 to default to compatibility mode with prior versions (’97-2003).
We have found a scenario where while running in compatibility mode, if the
user changes the document type from DOC to DOCX and password protects the
document, it corrupts the document and it cannot be opened anymore. The error
is as follows:

-----------------------------------------------------
The Office Open XML File ##.docx cannot be opened because there are problems
with the contents.

Details
The file is corrupt and cannot be opened.
-----------------------------------------------------

I have been unable to find anything on the Microsoft KB's about this error
or on the forums in this scenario. In the GPO settings, there is nothing
immediately obvious that could cause this problem.

Has anyone come across this before and is there a solution?

 

[Conor]

Actually I may have just found an article relating to the problem..

http://support.microsoft.com/kb/928282/en-us

 

[Conor]

It appears that the 2 problems aren't really related. The problem we're
having occurs even if a blank document is password protected and saved in the
DOCX format...