I found the solution.
Outlook had configured the language to English Canadian, not English usa. it works now. Another workaround is to overwrite the mso1036.acl file with the mso1033 file.
Here are my notes:
copy the normal.dot from C:\Users\username\AppData\Roaming\Microsoft\Templa tes to the same on the new machine

copy MSO1033.acl from C:\Users\Hal\AppData\Roaming\Microsoft\Office to the same location on the 2013 machine.

This should also work for 2007 to 2010.

Also, you can copy the custom.dic file C:\Users\Hal\AppData\Roaming\Microsoft\uproof

make sure your language settings in outlook and other programs are set to english usa from options, language screen