Mac Word 2008 - hyperlink message "Word cannot open the specified file"

Question

I'm using WordMac 2008 version 12.2.5 and after following detailed instructions on how to hyperlink chapters in a Table of Contents to their respective chapters in a book, I can only get the message "Word cannot open the specified file".
Any ideas what could be wrong?
My OSX is 10.5.1.
The instructions I followed are pasted below and are copied from the Smashwords Style Guide: http://www.smashwords.com/books/view/52
START OF PASTE FROM SMASHWORDS STYLE GUIDE:
How to create a linked Table of Contents. Consider this feature in “beta.” My
thanks to Smashwords author Cheryl Anne Gardner for sharing these tips below,
which I have augmented based on my own experience adding a ToC to the Style
Guide (woo hoo!).
By adding a linked table of contents, you can help readers navigate your
document. This is especially useful for non-fiction. Most fiction doesn’t
need it. If you follow the instructions below, the ToC should work in your
EPUB, MOBI and PDF files, but it will not work in our other formats.
First, create your table of contents where you want it by typing it out. Make
sure the text is normalized just like the rest of your Smashwords’ Word
document. Example:
Contents
Chapter 1
Chapter 2
Chapter 3
Chapter 4
Etc.
Next, we are going to create the BookMarks. In Word 2000, 2003 and 2007, the
Booksmark function is under the Insert tab. Go through your document, and at
each Chapter Start or Indexed item, you will highlight it and then select
Insert: bookmark. Name your bookmark corresponding to the Chapter/Indexed
item and then click add. It’s very important to use the first word of your
heading you’re linking to, because later on, when you add the hyperlinks,
Word displays the bookmark shortcuts in alphabetical order. With many
bookmarks, I found many of my bookmarks weren’t labeled properly, so it was
tough to link to the correct bookmark. If you want to link to a chapter named
How to Publish Ebooks, I’d recommend naming your bookmark
“HowToPublishEbooks” to make it easy to locate. If you instead name it,
“publishebooks,” you’ll frazzle your brain and make mistakes.
Repeat the process above for every Chapter Start as well as for other matter
in the book like index, bibliography, epilogue, prologue, etc. I didn’t link
to every section in the Style Guide, because otherwise the ToC would have
been three pages long. This is your call.
Next, return to your table of contents and highlight the word “Contents.”
Click insert, bookmark, and label this last bookmark “Contents”. Formatting
note: Bookmarks cannot have spaces or odd characters. If instead of
“Contents” you called the label in the document Table of Contents, as I did,
then when you insert the bookmark, name the bookmark “TableofContents,” one
word, or “toc.”
Next, add the hyperlinks to your Chapter Starts. In your table of contents,
if Chapter 1 is called Chapter 1, then highlight Chapter 1 and then click
insert Hyperlink. As you can see in the Style Guide, I tried to use more
descriptive labels. In Word’s Hyperlink menu on the left hand side, select
“Place in this document.” You will now see your bookmarks listed in the main
window. Select Chapter1 bookmark (or whatever you labeled it) and then click
ok. Do this procedure for every chapter and piece of matter in the table of
contents.
Final step. Now you can link back to the Table of contents. Move through your
document to each indexed item or Chapter start and highlight it. Then click
insert, hyperlink, and then select “Place in this document.” When the
bookmarks are showing in the main window, select the bookmark labeled
“Contents,” assuming that’s what you named your Table of Contents. Do this
for each and every chapter and or indexed item.
After you are done, all your links will be underlined. You will need to test
and make sure you linked everything properly. In most Word versions, you just
click on the hyperlink to test. In Word 2007, you may need to Ctrl-Click each
hyperlink and make sure it takes you where you need to go in the document.
Advice: Word has an automatic ToC generation feature under the reference tab.
Do not use this. It uses automated headings and formatting to generate the
ToC and this will un-normalize your text and cause font conversion issues in
your Smashwords files.
END OF PASTE FROM SMASHWORDS STYLE GUIDE.
I did all that as described but I still get the message "Word cannot open the specified file".
Could you help please?

Answer 1

This question would be better addressed to...
http://www.microsoft.com/mac/help.mspx
I think the operative phrase from that article is...
*Consider this feature in “beta.”*
-mj