A family of Microsoft word processing software products for creating web, email, and print documents.
OK, I didn't figure on you changing the location. In fact, I have a similar setup, but with separate Templates folders for the several side-by-side Office versions that I have.
I'll suggest some troubleshooting steps, with apologies if you've already tried them.
If you open Normal.dotm itself, rather than a document based on it, and make a change there, do you get the same error message when you try to save it?
If you move the Normal.dotm file temporarily to another folder and restart Word, make a change that should be saved in the template, then shut down Word, does a new Normal.dotm file get saved in your Templates folder? If so, you can use the Organizer to copy styles and macros from the old template to the new one.
If you move the Normal.dotm file to another folder, and change Word's File > Options > Advanced > File Locations dialog to match, do you still get the error message on saving a change in the template? Do you get different results if the location is outside your Documents folder, and/or outside your profile (that is, not under C:\Users\Ron)?