It really isn't particularly relevant how other programs perform, since they don't use Word's layout engine. Even so, Open Office appears to exhibit some of the same issues, so your display driver is looking even more likely to be the culprit. That said, you might try repairing the Office installation (via Start > Windows Control Panel > Programs > Programs & Features > Microsoft Office (version) > Change > Repair).

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Cheers,
Paul Edstein
[Fmr MS MVP - Word]