Originally Posted by jdy7777

It seems I/we have solved the problem. It was the anti-virus blocking Office but not in an anticipated way... The first time Office goes online to find Templates or whatever it downloads at least 4 folders to the user's AppData folder. It was the download of those folders to the file system that was being blocked.
...
We use Kaspersky AV.

It might be good if someone would post this on the open Net for others to see. I won't be. Many normal users are looking for the solution and not really getting helped.