Endnote X1 slowing down Word 2003

I am using Endnote X1, Windows XP SP3, and Word 2003 (SP3). When I install Endnote, it does strange things to Word:

If Endnote is installed, and I start Word (even if Endnote is not running), and push and hold one of the cursor keys (e.g. to move the cursor through some text), the cursor moves very slowly, and as the cursor moves through each character, the mouse cursor changes from the usual cursor to the hourglass. Word’s CPU usage rockets up to 100%.

If I start Endnote, open a library, and then close the library, I can use the cursor keys in Word without any problems.

If I open a library and highlight a reference then the problem returns. Sometimes if I click on Edit / Output styles and change the style, the problem stops, sometimes permanently, sometimes temporarily.

I have switched off instant formatting, and that does not make any difference. I am not tracking changes. Normal / print view makes no difference.

Anyone else have this problem?

I have met with the same problem like yours. But what I am using is  Word 2007 rather than Word 2003. As long as a Word  document containes several cited references, the Word program slows down. Furthermore, the more references a doc document cantains, the slower the Word 2007 becomes. Sometimes the Word will stop responding for 2-3 minutes after a little change has been made to a document. I have switched off instant formatting too.

When I used Word 2003 before, I have not met with this problem.

 My notebook PC configuration: ThinkPad T60, Intel Core 2 CPU T7200, 1G memory.

I should mention that the problem affects primarily the cursor keys, or the delete key. I can type without problem, and pressing and holding (for example) ‘a’ works as one would expect and does not produce the flickering hourglass. It looks like Word is still communicating with Endnote at certain points (i.e. after the press of a cursor key) and this is slowing things down.