Office "in general" Locking up.."file save as"

Ok guys n gals I have one that I cannot figure out and Google is really not helping much.
Here is the deal, recently on some Windows 7 Pro pc's Excel and Word seem to lock up when doing a File Save As.
We have an older version of Office, Office 2003 and have SP3 installed as well.
Basically regardless if you open Word or Excel whether it is a empty word doc or empty excel sheet or not, when we attempt to do a File Save As and then select the drop down "Save In" the Office app freezes.
In some cases it will not come back to life and in others it will.
Thinking it was a bad install I wipe it clean of all Office and then re-installed...still no luck.
I then prepped a totally different Win 7 Pro pc and set out to install everything fresh.
Some of the apps (Oracle Java) requires that the end user be an Admin to the PC so prior to all installs I did so with this user account.
1st thing I installed was Office 2003 w/h sp3 and tested it and all was well.
I did this repetitively through out all installs. Logging in and out to test.
Did Windows updates, Installed Anti Virus...pretty much everything to get this PC ready for the user.
Again testing Office as I went.
I then removed this user from being and Admin and logged in him back into the PC....now Office is broke again on this PC......WTH?
So thinking this is a permissions issue of some sort I placed him back into the Admins group....it is still broken.
I have several Win 7 pc's in the domain and to date no one has brought this to our attention so I can only assume it is not domain wide at this time.
Now here is the kicker...I am a Domain Admin and it also breaks for me logged in under myself.
However if I log the Domain "Administrator" into this PC Office works fine?????
I remember "something" from several years ago that had something to do with Office and Network but for the life of me that brain cell is toast.
Anyone have any ideas?
The alternative is to tell the user to navigate using the listings on the left instead of the Save In drop down but my manager wants this fixed....

Try to delete the MRU (Most Recently Used) ComDlg32 registry keys with the regedit.exe program.
Navigate to: HKEY_CURRENT_USER\Software\Microsoft\Windows\CurrentVersion\Explorer\ComDlg32
Delete the subkeys (LastVisitedPidlMRU and OpenSavePidlMRU)
Be careful with editing the registry as there is no Undo possible: all changes are applied immediately.

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