When I try to design a custom mailing label I get the error report "Word has encountered a problem". The detailed explanation was given as follows.

"There is a problem saving the file.
Usually this is because the disk or floppy disk is too small for the file or is full, RAM memory is low, or there is a permission problem with the drive the file is being saved to.
If the amount of disk space for a paging file is low, save the file to another drive. If the RAM memory is low, increase available RAM. If permissions to the drive do not allow you to save to that drive, save the file to another drive or request permissions from the administrator to save files to the drive.
Note: This error can also occur if the computer is running a version of antivirus software that is not compatible with the Microsoft Office system or needs to be updated."

I have searched MS forums and others but none refer to my label problem.
I am using:
New PC, with Windows 7 (64 bit), Office 2007.
Firewall PC Tools ver. 6.0.0.88
Antivirus AVG free 9.0.819.
My previous experience with XP and Office 2000 seems to be of no use at all.