The reason Word locks up like this is sometimes obscure, but usually it's because the original session was closed abnormally.
Word does create an AutoRecover file (.asd), which sometime actually works, but it also creates these ~*.tmp files in thenatural course of work.
Word is notorious for leaving behind what archeologist call shards, trackers call scat, and disgruntled word users call s***.
If all goes well, when you save a doc and then close it, the tmp file will be erased. This is a best case scenario; a regular house cleaning is still a good idea.
These tmp files are one of the reasons one should not work off of a floppy. The temp files are placed where the document is located and can sometime be too large for a floppy to handle.
I would recommend that you make SR-2 is installed. It won?t eliminate the problem, but you?ll have the latest fixes
SR1: http://office.microsoft.com/Downloads/9798/sr1off97detail.aspx
SR2: http://office.microsoft.com/downloads/9798/sr2off97detail.aspx
Also look at:
http://office.microsoft.com/downloads/9798/Wd97mcrs.aspx
(There are no spaces in the URLs)