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I have office web apps installed , everything works fine unless checkout is required on a document library, then I receive the error

"An error occured while opening this document. To edit this document, open it in Microsoft Word."

Is this default behavior , or do I have some confiuration issue perhaps? SP and OWA are on SP1 and the June CU , using NTLM auth. THe issue was also happening before the updates.

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