Sorry, the paper size should read "Letter" and not "Legal".
Also, all of the other changes I make to the Normal.dot are saved. I have even saved a template with the changes as New.dot, deleted Normal.dot and renamed New.dot to Normal.dot and the same thing happens.
Even when I create a new template and leave it named as New.dot and then create a blank document based on New.dot it still reverts back to "Letter".
Hope there is help out there.