"What happens if you create a new document and do what I did above? See if you can recreate this in a new document. There may just be something wrong with that document."
Bingo!! I copied the document, then made it read only and then started protection - and tried it. This time - I was able to type in the unprotected fields with no problems!
That other document must have been corrupted.
Thanks, trainingclc!
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