This is only applicable if you are able to customize Office with the OCT. Retail copies of Office do not have the ability to use an OCT.
Click on start, goto run. Type %appdata%\Microsoft\Templates, and hit enter. Right click on the normal.dotm and choose open. Make whatever changes you would like and save. In your OCT in the “add files” section add the normal.dotm that you just modified. For the destination path use “[AppDataFolder]\Microsoft\Templates” Then in the “remove files” section add “[AppDataFolder]\Microsoft\Templates\normal.dotm” This second step to remove the normal.dotm is required to make sure that your custom .dotm from the add files section will get laid down even if there is a previous normal.dotm from a previous installation of Word. If you don’t remove the previous one first, I have seen instances where setup won’t replace it.
PingBack from http://microsoft.linkedz.info/2009/04/24/how-to-deploy-a-customized-normaldotm-with-office-2007/
Unfortunately on first run, Word will rename Normal.dotm to NormalOld.dotm and place its out-of-the-box Normal.dotm.
Any way of stopping this behaviour so that the one copied in as shown above is the one that is used?
You are referring to the behavior that exists in Office 2010 not Office 2007. To answer your question
however, Yes you can stop this behavior by adding the following reg key via the "add reg keys" section in the OCT for 2010.