Click 'Go to EndNote' to link the two programs and add references from your library to the document.
Then quit from EndNote and open your Word document. To use EndNote with MS Word, first run EndNote once. If you attempt to start EndNote in any other way either by clicking a library or by selecting 'Go to EndNote' from Word's Tools menu this setup script will not be called and EndNote will fail with a variety of error messages. This can only happen when EndNote is initially started by clicking on the program icon in the Start menu (once you have done this the settings will remain valid for the rest of your login session).
This means that certain files which are necessary for correct functionality are not in standard places and it is necessary to run a setup script to impose the correct location settings.
EndNote on the MCS runs from a central server and not from the local hard drive.