I was under the impression that normal.dotm was a user template not a workgroup template. However it seems that all users are sharing the template that happens to be in the workgroup template folder. I did a search on my computer and there was no normal.dotm on my c:\ drive. I have set the file location for the user to a folder on c:\ in documents and settings. This must be the default because I didn't change it.
How can I fix this? Now that template has margins of 1/4".