I reinstalled Windows XP and did all of the updates and patches on a Dell Optiplex 620. P4, 2.8ghz with 1gb ram, not a blazing machine, but good enough for the classroom.

I installed Office 2007 using the administrator account and was able to create and open DOCUMENTS with it. The problem comes when I log into the computer using the school domain and a teachers account. I get 2503error and a reference to FIND the answers in PSS10r.chm. There is no problem logging in using an administrative account, but policy wont let me UPGRADE the teacher's account, she must REMAIN a Domain User.

None of the solutions I have found online seem to work, including uninstalling and reinstalling Office. Other machines with the same specs work, what went wrong with this one?

Any ideas?

ThanksCan you change the security policy for that user?
Sorry, I don't know the answer. Have you SEEN this article?
http://www.theeldergeek.com/group_policy_for_windows_xp_prof.htm

That article is rather deep. Some users just stop using the Domain Policy. But that has to be your decision.