Error encountered while typing to open the file

OS: Windows XP SP 3; Memory: 4 GB; Microsoft Office 2003
I am trying to work on one of my document file, and I am getting error message.
The document file resides on one of my server Windows 2003 SP 2.
I am trying to remotely access that file and modify the same.
I am able to connect to that network drive without any issues.
But when I try to open the word document I get an error message.
Error encountered while trying to open the file. Please retry.
I have the same version of office installed on both the machine.
Any idea of why I am getting this error message?
