This is a confirmed Word 2007 bug:
http://support.microsoft.com/kb/935514When you use the Microsoft Visual Basic for Applications (VBA) wdDialogInsertFile Dialogs method to return the path of a file that is saved on a network location, an incorrect path is returned.
For example, the VBA macro does not return the network path location of the file. Instead, the VBA macro returns a path that resembles the following path:
C:\Documents and Settings\user_name\Local Settings\Temporary Internet Files\Content.MSO\file_name.doc
I installed the hotfix that MS provided to fix the issue but it did not resolve it. Does anybody have ideas for a workaround till this gets fixed?