When Word breaks a word like that, either the document is damaged (corrupt) or the font is. If you select a different font, does that make a difference? If it doesn't, treat the document as corrupt; see
http://support.microsoft.com/kb/918429/en-us/ (How to troubleshoot damaged documents in Word 2007 and in Word 2010).
Note that in a narrow column, words longer than the width of the column will be broken. This is not an issue; instead, it is a sign that you need to hyphenate the word (or increase column width of course).