I didn't realize you're installing from a network. Also, if you ever install Office, you ought to use Eraser or don't expect the reinstall to help. Eraser completely wipes Office from the registry prior to properly reinstalling it. At this point, hit Start-find-files or folders and find winword.exe. Make note of its location.
Then, Start-Run and type regedit and hit enter.
Open hkey_classes_root
Find the .doc folder and delete it.
Double-click any DOC file, then when you're asked what program you want to open it with, don't pick it from the list, instead, hit the browse button and find your winword.exe file and choose that. See if everything works then.
If not, use Eraser97 and reinstall. Here's where you can get it:
http://support.microsoft.com/support.../Q176/8/23.ASP