"Publisher cannot complete the operation" in Office 2K

PC=Dell Optiplex GX280, 80GB hard drive (more than 70 unused), 1GB memory,
Windows XP Pro, SP2. Office 2K SP3, Publisher. All latest Office and
Microsoft updates applied. Had user reboot. Only started Publisher, no
other apps. Microsoft Publisher Catalog appears first - under Wizards (on
left), selected Flyers then Event. Tried Company Picnic Flyer - got
"Publisher cannot complete the operation". Tried "Pets Available" flyer -
got in okay. This repeated itself (some worked, some didn't) with different
flyers. Logged in as Admin to the PC, no problems with any of the flyers.
On the PC, I put the user as Power User, still got message/error. Put user
as Adminstrator, still got message/error. Does anyone know what is the
solution or workaround? All other searches for this error message resulted
in the problem associated with operating systems and/or Office older than our
versions (We are a small government entity). Thank you.