I have created a new content type with a document template that we want to have in sharepoint. When attempting to create a new document from said template I get the following error:

One bit of advice I was given was to disable the IE add on Sharepoint OpenDocuments Class, which does help the issue - I can create a new document from the template. However it forces the documents which already exist to open in the client, despite the default behaviour being set to open in browser. And yes, we do have office web apps installed. Someone else mentioned that having a url path over 255 can cause the issue, but ours is not even close to that long, it is only about 165 characters in length.
Thanks in advance.