If I am following you, then you are editing the document  template in
word, not a document created  off the template. Try this. Click the New
button and select  your new content  type. This will give you a blank
document based on the word  template you edited. Now go to the quick
parts dropdown and I think you will find the Document property
available. The metadata is associated with the document, not the
document template.

It is not enabled  with I do that either. Even if it was, it would
not solve my issue. I want to create a template  with the fields
already define so when the end user does a "New" it is already there
and when the fill out the DIP it automatically goes into the doc.

I know you can't set the defaults for the columns  by editing the
template, because the template  is stored differently and doesn't have
the metadata storeage. You can set the defaults in the content  type
columns themselves. I also don't think you will be able to add the
metadata fields to the document  until it is saved the first time to the
document library. Once its saved and the DIP is filled out the values
are usable in the document from then on. That I've done. But I don't
think you can put them in the template itself.

The template  you are trying to edit, is it in [list name] > Advanced Settings -
Document Template or are you trying [list name] > List content  Type > Advanced
Settings - document  Template? When I have done this it has been either at the
list content type  level or site  content type level for my custom content type.
I'm not sure if there is a better way, but after the changes are made if you
want to redeploy this content type with the document you will need to pull it
down from the SP site and include it with your feature. The annoying part about
that is if your content type changes you will need to recreate the template.

OK. Here is where I am at now.

If I create a doc  lib and select  word(07) as the default content  type
and can then go back the thru list>advanced>doc template  and edit  the
template and add the fields. This is ok for 1 off solutions.

I am trying to do this at the site  content level so it is done once
for everyone but when you edit a dot or dotx associated with a site
content type  you can not add the fields. There is probably some weird
MS reason why it was done this way but who knows..

I am going to try a edit the document  template by adding  it to the
doc lib manually and saving it back to a template and then associate
it back to the site content.