That's what you get when you open a document while the "Files of type"
box in the Open dialog is set to "Recover Text from Any File".
Unfortunately, if you save while the document looks like that, you
lose all the formatting and save all the junk, so don't do that!
Click File > Open. At the bottom of the dialog, change the "Files of
type" box to "Word Documents" or "All Word Documents".
In Word 2000, if you use the Recover Text setting, it sticks there
until you change it to something else. In later versions, it
automatically switches back to Word Documents after one use,
specifically to avoid the problem you have.
Read more at
http://www.word.mvps.org/FAQs/AppErrors/RecoverText.htm.
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Regards,
Jay Freedman
Microsoft Word MVP
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Thank you, Jay and Suzanne, for your patients and help!