That suggests you're running Windows in Safe mode. The failure to open the docx file even in that mode suggests a fairly fundamental problem with either your Office installation and/or the Compatibility Pack, or with Windows itself. Sad to say, running all your cleaner programs may have contributed to this state of affairs. You may now be at the point where the only sure way of rectifying the problem is to reinstall Windows & all your apps from scratch.

__________________
Cheers,
Paul Edstein
[Fmr MS MVP - Word]

Yes, I was running WIn Xp PRO in safe mode and Word 2003 control' safe mode...among other tries...
No apps, No custom templetes.
Completely removed Office 2003 2 times now. Removed ALL traces of Office 2003 from Registry and folders and anywhere it would let me. Reinstalled with all updates SP2 and so on. Compatiility PAks with NO success.

Agreed, WIndows XP PRO 2003 seems to be the issue with Word 2003 not being able to open any .docx files.

Paul, do you have any ideas besides wipining Windows XP Pro and starting over? IF not then I agree with your evaluation.
Paul.