You might like to go to Word forum on MS site
Although I am not fond of that place, you might give it a shot because if they duplicate it, it seems to be a serious bug affecting many users. Concerning the "workarounds", this one is actually not a workaround. Many people still have older versions that do not recognize docx and need a converter. Converters are free but not 100% accurate by some accounts. So, in order to improve capability with other potential users, it would be better to save as doc as a default (very easy to set in a save as dialog box. If that works, I would not look back. After all, if you do not find a workaround, you may be stuck with a relatively useless program (may be no incentive to use it if you have Word 2008).
A remote option would be to trash the Normal file or even reinstall Office (if you find on the forums that others do not have this problem).
Please keep us posted because this is an important issue. I am considering switching to 2011 but am not sure whether they cleaned up the bugs from 2008.
Do you ever insert a ppt picture into Word text box? If yes, do you need to only use paste special and select pdf like in Word 2008 (otherwise it would be fuzzy)?
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