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
Regedit
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.