Word 2007 tries returning a long file path to 3rd party VFP app. whensaving a document to a network

[El Capitán de las Albondigas]

I'm using a 3rd party VFP application that uses OLE to automate letter
merges. The problem is that it can't handle file paths over 65
characters long. When I create a letter in this application and go to
File/Save As and try saving it to a network drive I get an error from
the VFP app saying the file path cannot exceed 65 characters. The
mail merge document saves fine to the network drive. The actual path
to the letter is simply O:\letter.doc. However, Word is trying to
return some other file path. I found a KB article that addresses a
similar issue with Microsoft Visual Basic for Applications. When
saving docs to a network drive it tries returning this file path:
C:\Documents and Settings\user_name\Local Settings\Temporary Internet
Files\Content.MSO\file_name.doc

I have a feeling the same thing is happening in Word 2007, but I
haven't found anything. I tried downloading and installing the hotfix
(KB935514) for the issue in MS VB, but when I run it I get an error
saying "The expected version of the product was not found on the
system."

I'm using MS Office Word 2007 (12.0.6331.5000) SP1 MSO
(12.0.6320.5000)
Part of MS Office Ultimate 2007

My current work around is to save the file to my local drive (C:
\letter.doc) then copy it to the network drive and change the file
path in the VFP app to the network drive (O:\letter.doc). It's a bit
of a pain, but it works.

Any help would be appreciated.