The installation of the ODF-compatible Templates feature fails if the user does not have write permissions to the template folder configured in Word.
The failure causes a rollback of the complete add-in installation.
Workaround: Templates have to be manually deselected during installation.
Possible solution: Add a custom action to check whether the folder is writable. If not deselect the templates feature.
NB: This has low priority since it is not a very common scenario (home users typically will not have modified the template folder, corporate users will not install the add-in themselves)
See also user feedback at https://sourceforge.net/forum/message.php?msg_id=5684180
The installation shouldn't fail if you don't have access to the templates directory.
Frankly, I was surprised that templates were installed at all.
To get around this I exported the following registry key
[HKEY_USERS\S-1-5-21-1702909450-4172511468-2784962303-1747\Software\Policies\Microsoft\Office\11.0\Common\General]
"SharedTemplates"
I then changed it to a path that I had permissions to.
Installed the plugin.
Double-clicked the exported reg file to reset it back to what it was.
I now have the ability to open odf files in Word.
Should have reference this MS link describing the template locations.
http://support.microsoft.com/kb/290232