If your users have an earlier version of MS Word than the person that last saved the application, then the MS Word reference will become broken. If this is the scenario then you should develop your application using early binding, but then convert it to late binding and remove the MS Word reference entirely before it is deployed. That way the reference will not be an issue. You must, of course, ensure that the code which automates MS Word is compatible for all versions in use by the end users.
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