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Microsoft Office Publisher 2007 - the disk you are trying to save to is write protected

I have a user setup in where they are using Windows 7 and Office Pro. When they open Publisher and try to save a new document, they receive an error "the disk you are trying to save to is write protected"
they run on a domain with a windows 2008 server with folder redirection. I'm sure this is where the problem is but I don't know how to fix it. All other Office documents open and save fine, just Publisher

Any ideas on how to fix?
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Anastasia D. Gavanas
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Ok, an update, I applied the hotfix and still nothing. Now it was mentioned that permissions may be an issue so here is the setup that I have

\\servername\users$\username (all users have full access to their own home directories). All folders below this one are redirected with Windows 2008 folder redirection GPO

\\servername\users$ (all users have no access to this folder) (user: CREATOR OWNER has full access)

the last one is the potential issue but I can't see why all the other Office apps have no issue with this setup