The problem lies with the way Office handles ediiting. When a document is opened in editing mode - it creates a temporary file - when you save your changes it overwrites the existing file with the temp file - then when you exit Office it removes the temp file. Office is designed like this for fault tolerance as the temp edit file is updated every minute or so that way you can recover your work after a system crash. This is why the user needs Modify permissions on the Folder the files reside in when edits are made. Otherwise you will get "Access Denied: errors.
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