Outlook 2002 & email editor-word

I have Windows XP sp2, Outlook 2002 SP3, Word 2000 SP3.

Now here is what happened. i had Outlook 2000 installed and i was able to use word as my email editor. Then i had to install outlook 2002 so that i could syncronize my "IPAQ" hand held.

now when i send email messages i word does not open. Now i have gone into tools/options/Mailformat to change the message format to use word as the email editor .......... AND here is the problem. I am not able to select these 2 boxes as they are greyed out. i am able to select the "compose in this message format" I am also not allowed to change the stationary. but i can change the fonts
i do have a signature.


I followed the help procedure

Turn Word on or off as your e-mail editor or viewer
Do one of the following:

Turn Word on or off as your default e-mail editor for all new messages

From the main Outlook window, click the Tools menu, click Options, and then click the Mail Format tab.
Select or clear the Use Microsoft Word to edit e-mail messages check box.
Turn Word on as your e-mail editor for one new message

But as noted above i was not able to do that.

secondly i tried the following

On the Actions menu, point to New Mail Message Using, and then click Microsoft Word (message format).
i tried this but i got the following error message
MICROSOFT OUTLOOK "Can't create the item"

please advise what could be wrong here.
Officework