Default Document Content Type always loading as Document

The problem statement is in MOSS 2007, when the user adds custom content types to an existing document library and then set them up to appear in the new document dropdown, MOSS still uses the default Document content type (though after saving, you can edit properties to set the correct content type - how undesirable!). Stephen Muller pointed me in the right direction for a fix, but mine differs slightly from his.

Solution:
Create a document library and set the default Document Template to None. i.e. do not select Microsoft Word, Microsoft Office Word 97-2003 template, etc.

After the document library is created, do this within the Document Library Settings:

1. Create Columns or Add from existing site columns
2. go Advanced Settings > Allow managment of Content Types=Yes,  
3. then Add from existing site content types
4. then Change new button order and default content type and set the new content type up as #1 (for example)