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I fully agree that certain system folders will be created on both NTFS partitions whether I like it or not, but that is exactly the reason why I’m storing my data on a separate FAT32 partition, trying to avoid the conflict of user access permission which most certainly will happen in NTFS.

However, I found a partial workaround for this problem. I found that Standard Shield always scan this folder while I am saving a word document:
E:\Users[username]\AppData\Roaming\Microsoft\Office\Recent
together with the “.LNK”, “.TMP” and “.DOC” files associated with the opened word document.

Then I tried to modify the scan exclusion list of the Standard Shield (On-Access Protection → Standard Shield → Customize → Advanced). I’ve first added “.TMP" to the exclusion list, but it’s no good. Word 2007 is still creating a copy of zombie “~WRLxxxx.tmp” for each save attempt. Then I’ve added both ".DOC” and “*.TMP” to the exclusion list. This seems to have partially solved the problem. Although I’m still getting the same error message on the first save attempt of each editing session, I could still hit the “retry” button which is one of the options following the error message. It’s then possible to save the document with the original filename without creating the zombie “~WRLxxxx.tmp”. Subsequent save attempts during the same editing session succeeded without problem.

I wonder if this implies that the Standard Shield is interfering with the Word 2007 file saving procedure? Would there be any full resolution to this problem? If this is actually a problem with M$ Office, I would have to try resolving with them…