NOTE: "Office 2007 has encountered problem..."

 #1

The first time that Word is started after a crash, the "Document Recovery" task pane will appear on the left side of the screen.

If you do not want these files shown in the document recovery task pane, click Start, in the Search box, type regedit and press Enter to open registry editor.

Locate the registry subkey:

HKEY_LOCAL_MACHINE\Software\Microsoft\Windows NT\CurrentVersion\Terminal Server\Install\Software\Microsoft\Office\12.0\Word\Resiliency

There will be a key called "document recovery". Delete everything in this key. Once everything in this key is deleted, the problem will go away.

If you want to troubleshoot the corrupted .asd file, you can also follow this KB article:

How to locate and correct disk space problems on NTFS volumes

http://support.microsoft.com/kb/814594 

#2

The usual suspects for this kind of problem are:

1. Corrupted Normal.dotm file. Try renaming or deleting this file--Word will create a new one automatically.

2. Corrupted Data key in the registry. Try deleting the Data key. Word will create a new one automatically. In Word 2007, it's here in the registry:

HKEY_CURRENT_USER\Software\Microsoft\Office\12.0\Word\Data
If you're not comfortable editing the registry, try the Fix It solution shown here:

support.microsoft.com/kb/940791

Note that the article describes a different problem, but the solution provided by the Fix It button--deleting the Data key--is the same.

One or both of 1 & 2 usually fix this kind of problem. If is still occurs, a third possible culprit is:
3. Misbehaving add-in. Disable all add-ins. Close Word, then restart Word, and see if the problem recurs. If it doesn't, then re-enable add-ins one at a time to see if the problem still occurs.