I keep loosing the ability to update the index - it is grayed out. If I delete the index and re-insert a new one (and all the hassle of formatting etc.), the index is there, but the "Update Index" remains grayed out. Is there an overlooked setting somewhere? What's going on?

Have you tried repairing the Office installation (via Help|Detect & Repair) in any Office application?

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Cheers,
Paul Edstein
[Fmr MS MVP - Word]