If that exact method of dealing with the normal.dot template doesn't work, try renaming the normal.dot template to normal.old. This will cause Word to create a new template when it re-boots.
Also, if you are using recent versions of Norton Anti-virus, be aware that they have introduced some changes related to macro scripts which can cause some programs to hang. Refer to the Symantec site on this, or turn off (I think) the script blocking feature of NAV. (I don't actually upgrade software or do any of these things, but I do read a lot.)
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