If you want to create an item and save it as an .oft file, you must turn off Word as the editor *before* you open the item. Then create the item, choose File | Save As, set the file format to .oft, choose the file location, and Save.
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Sue Mosher, Outlook MVP
Author of Configuring Microsoft Outlook 2003
and Microsoft Outlook Programming - Jumpstart for
Administrators, Power Users, and Developers
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