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Don't waste your time (and money) calling Microsoft... I had a similar problem with an Exchange 5.5 server that got infected by a virus (Fizzer). Norton CE server 7.6 deleted the infected edb.log. Here is an easy fix: I was able to recover from this situation by following these steps...

I was able to find and correct the problem I was having... It turned out that the Client32 file caching was on and it needed to be turned off. I'm not sure this helps you with your problem but I'm glad I was able to fix mine. Please let me know if you find a fix for yours...

It make sense for a floppy disk drive scenario but why wouldn't it work on a local and network drive where the user has full access and an older version of MS Office (97) works just fine??!! I'm giving up and I'm calling Micosoft...

Here is a fix Microsoft posted a few days ago. I have not tried it yet but I hope it works... http://support.microsoft.com/search/preview.aspx?scid=kb;en-us;Q311153

I have the same problem when attempting to save documents to a network drive. I have a few new systems running Office XP that have the problem. All systems are running Win 2K and MS Office XP. All documents on the network drive were created with WinWord 97. The problem occurs with new documents...