Template path probelm when Office 2003 is installed with an MST fi

I have been working on setting up an automated installtion for Offce 2003 on
and off for a while now. I have pretty much got all the kinks worked out for
the setup my office will require, except for this one:
In the Office 2003 Custom Installation Wizard:
Changer Office User settings:
Under shared paths i have user templates set to %homedrive%\office\templates
under workgroup templates i have set it to our company templates shared path.
The problem is this; once the installation is complete it seems the first
user logins and everything is fine. If you go to word and check the files
path locations they are set correctly (workgroup path to the network share
and user templated to %user%\documents and setting\office\templates). when a
second user logs into the same machine (as some users are sharing) when
exiting and office application an error pops up stating "The normal.dot file
was opened as read-only would you like to save it some where else" If you
click yes the window automatically opens to the network share template path.
I do not understand why this is happening. I have set up many machine
individually using the same path, for mutiple user of the same machine and
never had an issue. Since the user home directory will be in their profile
its not like it should be trying to write over another user's normal.dot
template. If anyone can suggest something it would be very helpful. Thanks