I was experimenting with RAM disk and was changed the localization of
temp folder. After all I’ve uninstalled not needed anymore software that was responsible for managing RAM disk and because of that I couldn’t work with Microsoft Word 2010. So, for those who had the same issue with
temp folder problem and Microsoft Word 2010 here is the solution:
The error message “Word could not create the work file. Check the temp environment variable”. Can be caused by incorrect registry values in the key:
HKEY_CURRENT_USER\Software\Microsoft\Windows\Current Version\Explorer\User Shell Folders.
Click Start and in the start search field, type
and press enter.
In the registry editor, browse to:
HKEY_CURRENT_USER\Software\Microsoft\Windows\Current Version\Explorer\User Shell Folders
On the right hand pane, check the value data for Cache.
It has to be %USERPROFILE%\AppData\Local\Microsoft\Windows\Temporary Internet Files.
If it is different, double click on Cache and type:
%USERPROFILE%\AppData\Local\Microsoft\Windows\Temporary Internet Files
under value data and click ok. Close the registry and restart the computer and check if it works.
Source: Microsoft Office Community. That helped me.