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Office Hangs Doing Local Save

If Microsoft Office hangs when trying to select a local disk in the "Save" dialog.

Quit from all Microsoft apps.
Never use them again (just joking, but consider it).
In the user's Library folder, open the Preferences folder.
Delete the file "com.microsoft.office.plist".
Re-launch any affected app.

Note: If there are still issues saving, logout and log back in to Microsoft licensing.