I have an installation with a bunch of new Vista Business PCs. Loaded The
Vista 1.0 Update 3 client. Cannot save Office 2003 files. This is the
message I get saving a Word file - "The save failed due to out of memory
or disk space."

In Excel I got " xxx (filename) cannot be accessed. The file may be
read-only, or you may be trying to access a read only location. Or, the
server the document is stored on may not be responding." I click on cancel
and get this - "The document was saved successfully. but Excel cannot
re-open it because of a sharing violation. Please close the document and
try to open it again." There is now a file saved at that location but a
spreadsheet with 1 number stored in 1 cell is 33MB in size.

Notepad documents are saved and retrieved without issues.

I have seen an issue in a Cool Solutions blog with a similar problem
mentioned. Any fixes soon?