One important thing that I forgot to mention in the video is that if you create a hyperlink to a document on YOUR computer, such as C:\MyFile.txt, and you send that document to someone else, the hyperlink will probably NOT work on their computer, since they don't have that C:\MyFile.txt file.
Likewise, if you're on a network, and you link to H:\MyFile.txt, then the link won't work unless the person you're sending the document to ALSO has the same drive mapped as H:\ (such as a public share).
When in doubt, you can use UNC paths (universal naming convention) such as \\SERVER\Shared\File.TXT.
Hope this helps.
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Word 2007 Basic 3.