Patrick,
Thanks for the suggestion but I couldn't see anything under local machine that might do it. You did inspire me to continue my searching from before though since you also suggested the registry. I finally found it under the users profile by comparing it to the Office12 keys that I have already in place:
Start from either \HKEY_USERS\\... or \HKEY_CURRENT_USER\...
I guess the path could also be forced into the default user profile but I don't need that as there are only a few specific users that need it so I haven't tried that.
...\Software\Microsoft\Office\11.0\Common\General
You need to create a new expandable string key called SharedTemplates and give it the path to the templates folder as a value. Substitute 12.0 for Office 2007 obviously.
I'd been looking in Word and Excel...it was the switch to Common that finally revealed all!! :-)
Regards
Alistair