Re 1: I don't know what red bar you're referring to; I can't recall ever seeing it.
Re 2: Uninstalling, reinstalling & re-activating Office may be required, but you should try just repairing & re-activating Office first. All existing settings will be preserved.
Re 3?: You don't need to uninstall Office to download the backup copy. If a repair doesn't work, though, you'll need to uninstall then reinstalling Office. If Office remains un-activated after that, you'll need to & re-activate it, too.

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