In Word 2003 (and possibly older versions), go to Tools, Options, Save and check (if not already) the following settings:

  • Always create backup copy
  • Allow background saves
  • Make local copy of files stored on network…
  • Save AutoRecover info …
  • Save smart tags as XML
In Word 2007, go to Word Options (under that office icon at top left), Save, and check Save AutoRecover …

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