'Edit Document' requires a Windows SharePoint Services-compatible application and Microsoft Internet Explorer 5.0 or greater.

This behavior occurs because you can only use an Office 2000 program to open or to save a document that is stored in a document library. You cannot use an Office 2000 program to modify a document in a document library and then save the document to the document library. This applies to Office 2000 programs such as the following:

    * Microsoft Word 2000
    * Microsoft Excel 2000
    * Microsoft PowerPoint 2000
    * Microsoft Project 2000
    * Microsoft FrontPage 2000

How to resolve this:

Use Explorer view to open and to modify documents in the document library. To use Explorer view, follow these steps:

   1. Connect to the document library. Click Explorer view under Select a View in the left pane.
   2. Double-click the document that you want to modify.
   3. Make the changes that you want to make, and then click Save on the File menu.

If you have any queries/questions regarding the above mentioned steps then please let me know. I would be more than happy to help you as well as resolves your issues.