Strange...and, yes, I imagine it could be a stumbling block. However, I no longer have the 2007 version installed so, I cannot duplicate the problem from my computer (I have the 2010 version installed now and the instructions for 2010 work as described).

Here is another link (basically the same...but try it out):

http://washburnlaw.edu/technology/ho...ontspacing.php

Thanks for your efforts. Yes the above is the same and it does not mention that I must click "ok" after saying "yes" to saving for all documents, so I am quite sure that I'm doing it correctly.
Having spent a good deal of money for my Office2007, I hate to abandon it. Most annoying that there is no solution.