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Default Can't specify merge source

Word 2003, Windows XP:

Our staff member has a merge document which uses a table in another word
document for its data source. Both documents are on a network share drive,
and they can be properly merged and opened on many computers in our office.
However, all merge documents quit working on one staff member's computer.

On the problem PC, when the document is opened, the error is received that
Word cannot find the data source. I go through the find menu to select the
data source, only to receive the same error yet again, and the loop
continues.

Word can see and open the data source document just fine, but it will not
accept it as the merge data source.

This same process and same documents worked on this PC until very recently.
It seemed to break around the same time as a spyware infection followed by
installation if IE7 beta. All spyware has been removed, is there anything in
IE7 beta that could be impacting Word's connecting to a data source?

I have tried uninstalling, restarting, and reinstalling Microsoft Office
2003 Professional to no avail.

Carmen Mercer
Spokane Schools
Spokane WA