Ok thanks macropod, got me a bit further but the main objective is to be able to open a new blank document write a document for a company XYZ, (which has a specific style guide), click on a button in the Styles group and magically change all the fonts and headings to the specified style. It seems Word 2007 cannot do that.
I can open an old document (for testing purposes) and apply XYZ styles but to be able to change style i have to select text and then change it to the required style. If I have a 10 page document it just seems so clumsy...