Except in the most recent versions of Word, you can't save a template as a
document. Changing the extension makes Windows think it is a document, but
Word knows it is a template. The correct way to make a document from a
template is to create a new document based on the template. This is the
default action if you double-click on the icon. If you stored the template
in one of your templates folders, File > New will let you pick the template
as the basis for a new document. For more on the different kinds of
templates, tabs on the file new dialog, and locations of templates folders
see http://addbalance.com/usersguide/templates.htm.