You're not trying to replace the FOLDER you're trying to ADD a file to that location.
I can't guarantee that version 3.6x can see that location or not, but 4.x does for sure and my guess is that 3.6x does as well.

The folder structure doesn't even exist for the Office applications until the first time it's run. It then creates a folder structure and assigns the permissions of the current user FULL control. There should not be any issue for the user logging in to copy the file to that location providing that they've run Word at least once first and created that folder structure.