With some help we found a hotfix that doesn't look like it addresses the
issue from the description, but it does fix it. You may have to do the
online request or call for the hotfix file.
When applied to a client device and Read Only is selected the server shows
only READ and another user is allowed into edit mode.
http://support.microsoft.com/kb/956795
"Nate" wrote:
This question was asked before with no response, asking it in case anyone new
is looking. Have not found anything useful online or the forums.
Scenario:
File is saved with "Read Only Recommended" or Password Protected for Modify
Selected. User tries to open the file and is prompted for an edit password
or click the button for "Read Only".
Word 2007 - If the user selects Read Only the document on the desktop is
marked (Read Only) in the title bar and the user is not able to save on top
of the file. However, the file server shows the file locked for READ+WRITE
and a user attempting to open the document in edit mode is denied as the
first user already has the file locked.
Word 2003 - If the user selects Read Only the document on the desktop is
marked (Read Only) in the title bar and the user is not able to save on top
of the file. The file server does not show the file as open and a user
attempting to open the document in edit mode is allowed as thefile is not
locked for editing.
So, functionally Word 2007 puts the document in read only according to the
client, however, the file server allows the file to be locked which prevents
anyone else from opening it in edit mode.