On the problem system, open Word and disable Protected View. To do this, click File|Options|Trust Center>Trust Center Settings>Protected View>uncheck all options>OK.

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Cheers,
Paul Edstein
[Fmr MS MVP - Word]

Sorry, not OK. Both Word & Excel files open as read-only. Should have said earlier each computer is set to see the other's C: as a trusted location. Can fetch a Word file from the laptop to the PC, modify it, and save it back to the laptop; the file then opens on the laptop with the changes. Wish strongly to be able to do this in both directions. Should also add files transferred via sneakernet can be edited & changes saved; obviously sneakernet is a hassle & less desirable than direct connection.