This fixed it:
This problem is specific to the user's preferences (usually a corruption in one of those files). Removing and reinstalling the Office "software" will NOT fix this problem. However, Office 2008/2011
stores preferences in TWO locations in your home directory.
Deleting the preferences from BOTH these locations will fix this problem.
NOTE: Backup your computer before doing these steps!
Delete files in:
Macintosh HD Users ~your home directory Library Application Support Microsoft Office Preferences Office 2008 or 2011
Macintosh HD Users ~your home directory Library Preferences Microsoft Office 2008 or 2011
Then Apple menu Logout and login the current user or just Restart the whole computer.
NOTE: To get to a user's Library in OS X 10.7 or 10.8 go to the Go menu while holding down the 'alt' (option) key and select "Library".
NOTE: Deleting office preferences may mean you need to reset your personal settings/preferences in all Office applications. Entourage/Outlook email, accounts and rules should be safe as they are stored elsewhere.
Graham Needham
MacStrategy (http://www.macstrategy.com)