Office X on Mac 10.4.11

We have a suite of 7 I-Macs running OSX 10.4.11 and Office X joined to a mac server using open directory and then via the mac server to active directory. I have locked down the systems to only use Simple Finder. I have started getting an error message when active directory users try to open Word X that says "There is not enough Memory or disk space to run word" The I-Macs have 1GB Ram and I think if memory serves me right 200GB HDD which should be plenty.

Any suggestions what could be causing this? I have tried reinstalling word etc. But the error message does not appear every time which is the other strange issue.

Is it a permissions thing? If i recall correctly Office on mac needs admin rights the first time it is run?

It has been a while since i deployed, removed and installed Neo Office :)