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Mail Merge crashes with office polices sharedtemplates & usertemplates set to UNC patch

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Performing Mail Merge on CRM for Outlook clients (in special win7) might crash raising the following error in the application log of event viewer:

800a11f9
General
CMailMerge::DoMailMergeInternal
1487
Fault bucket , type 0
Event Name: CRMUnmanaged
Response: Ikke tilgængelig
Cab Id: 0
Problem signature:
P1: 4.0.7333.2747
P2: OUTLOOK.EXE
P3: 1289
P4: c:\bt\17195\src\application\outlook\addin\mailmerge.cpp
P5:
P6:
P7:
P8:
P9:
P10:
Attached files:
C:\Users\ksp\AppData\Local\Temp\CVR8870.tmp.cvr
These files may be available here:
C:\Users\ksp\AppData\Local\Microsoft\Windows\WER\ReportArchive\Critical_4.0.7333.2747_2caab19685d59c38a5aad3ef6762481d9a5514_08ac50bf
Analysis symbol:
Rechecking for solution: 0
Report Id: eb330b74-292b-11e0-944f-001c2580838d
Report Status: 0

Cause
This happens if office group policies are set to use an UNC Patch.

Please check these registry keys in order to see if this could be the case in your environment:

> [HKEY_CURRENT_USER\Software\Policies\Microsoft\Office\14.0\Common\General]
   "UserTemplates"=MULTI_SZ:\\Server\Folder

> [HKEY_CURRENT_USER\Software\Policies\Microsoft\Office\14.0\Common\General]
   "SharedTemplates"=MULTI_SZ:\\Server\Folder

Resolution
Change to UNC path to use a local path, e.g. C:\

Greetings,
Juliane