MS OFFICE 2007 (Word,Excel,PowerPoint) - crash/close/bug/problem - when DIALOG BOX launched...while opening files, inserting images, saving files,...
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SOLUTION: adjust the folder settings, probably depending on what your personal changes there...
1) set the icon size || CONTROL PANEL - Display - View Tab - Advanced - in the left drop down menu set ICON - set size to some fix value (example 36). (This solved the problem for me. Because I changed the size of icons in some directories, and that's when the problems started.)
2) if 1) doesn't work, reset the folder settings || CONTROL PANEL - Folder Settings - in General Tab - click the only button to reset folder settings
3) if that isn't enough just reset the folder settings and behaviour as at the beginning

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In my case, MS OFFICE worked fine, till I changed the view options and behavior of folders (size of icons, view icons in directory ICON/THUMBNAIL/DETAILS/... ..). At first MS WORD would crash each time I wanted to insert an image - at the moment the DIALOG BOX launched. After changing settings further it started to crash each time I wanted to open a file in MS EXCEL, and so on....

Probably the problem is that the launched DIALOG BOX belonging to MS OFFICE is confused about the folder view settings in WINDOWS XP (and maybe behaviour, didn't check it) of the folder that should be displayed in the DIALOG BOX of MS OFFICE. For example, in my case insert image in MS WORD crashed because of the folder settings in WINDOWS XP of exactly the folder that should be displayed in the launched DIALOG BOX of insert image in MS WORD.

Didn't try to figure out all the details...
Uninstalling MS OFFICE didn't work!