I wonder if she is opening new (blank) documents from the file menu and creating a template. Having a limited account she would not have the power to alter the "normal" template and this could be causing the problem.
If this is the case she could try opening new documents using the new doc icon (just below the file menu).
IMO you should uninstall Works as you don't need it if you have Works and the differences between the programs in the way they treat common tasks could cause conflicts. IMO