When a document library is created, the default document type is Word unless it was changed at the time the library was created.  This affects the choice you have when you click the NEW button in the library to create a new document from within the library.  The template can be a blank vanilla document, or a customized template with standard elements already included such as a logo, page numbering, formulas in a spreadsheet, or corporate formatting for company presentations.

1.     Open application to create new default document type.  Save the file (blank or document with page numbering, logo, etc.) somewhere easy to remember

2.     Open the Library.

3.     Choose Actions, Open with Windows Explorer.

4.     Browse to the file created in step A.

5.     Right-click on the file, choose Copy.

6.     Click the Back button until you return to the library, and then click the “Forms” folder to open it.

7.     Right-click in a blank area in the folder window, and then choose Paste.

8.     Close Windows Explorer and return to the document library on the site.

9.     Choose Settings, Document Library Settings.

10.   Under General Settings, click Advanced settings.

11.   In the Document Template section, type the address of your custom template in the Template URL box. The location is the Web address of the template on the SharePoint site, relative to the name of the site. For example, if your template is called CompanyPresentation.ppt, and you add it to the Forms folder of the Shared Documents library, you type:

 /Shared Documents/Forms/ CompanyPresentation.ppt

NOTE:  If the document library has content types, then you must change the default document type for each content type.