Cannot attach files to Outlook 2007

I packaged Office 2007 with mostly DEFAULT options... I'm running Outlook now,

trying to attach a file to send, and when I try (no matter WHERE I put the File),

I get an error window saying:

"Cannot create file: ... Right click the folder you want to create the file in, and then click Properties on the shortcut menu to check your permissions for the folder."

Wha??????

Can anybody help me do a simple File Attach in a packaged session of Outlook 2007???  It shouldn't be this hard....

Thanks.