Word document only opens with file/open, not doubleclick

I have XP Pro SP2 and Office XP. Changed the password on the Domain Server (done by customer) and the local machine and now the documents in word will not open with a double click. You can open word and then open the file but can not edit it. If you click on file/properties, then OK, it minimizes word and when you maximize it you can edit it with the keyboard only, no mouse clicks work. The user is set as administrator on both the workstation and the server. Anyone have this problem before?