Hi
This seems to be a corruption with the Normal.dotm file in my case (generic template used by Word). Either create a new Normal.dotm file to replace the exiting file or copy one from a working machine. You can delete or rename the old file.
This is stored C:\Users\<username>\AppData\Roaming\Microsoft\Templates
Also check your template directory e.g.
2007 > Office Button > advanced > under general/ file locations > ensure the user templates is pointing to a local directory on the machine (and not to a server location - you can still specify a server location for you work group template).
R Gray