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Check Out Required message completely inappropriate on Read-Only doc

Hi, client and I are having serious problems because Users are confused by getting the Office yellow message bar declaring that "Check Out Required" - yet as the Word title clearly shows (top middle of screenshot to prove), it is actually a Read-Only doc anyway!

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Check Out Required

There is no way that any user should have a read-only doc that is telling them they must Check it out to modify!

We are having the same problem with both XP + Office 2007 and Windows 7 Ent + Office 2010 Pro Plus. Connection is through Forms Based Authentication, but I'm sure Windows will have the same problem. I've also resurrected a SharePoint 2010 site and tested the same problem is there!

Have stripped this down to a basic Document Library with default Visitor group and Permission Level and no Library versioning or solutions. Merely adding the needed "Require documents to be checked out before they can be edited?" option triggers this buggy behaviour in Office.

I beleive a workaround is changing the core.js but that is unsupported and likely to cause further problems. For such a basic DMS function, we need a workable resolution.

Hope somebody can help.

Phil

NB: If you wonder what happens if you hit the button, you (unsurprisingly) get the "Cannot perform this operation. The file has been deleted or someone else has it checked out" (which is rubbish and highly misleading - can we change this at least?):

Image may be NSFW.
Clik here to view.

This is all really undermining the User Acceptance Testing and seriously shaking client's confidence in SharePoint and support. Hopefully Microsoft can address whether there is a proper resolution or fix coming.



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