Strange one this one!   Looks like there’s an MS update that causes problems with Word 2007.   The symptom this time was that you can’t click anywhere in a Word window – although everything else seemed to work ok?

Turns out – to fix it, you need to remove/rename the following registry key:

HKEY_CURRENT_USER\Software\Microsoft\Office\12.0\Word\Data

This is documented in KB 940791:

http://support.microsoft.com/kb/940791