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So, if is broken by a security update (which would explain it suddenly stopping, I guess) I'll need to look for an alternative to Word '97, yes?
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We're speculating. That may not be the reason.
One good way to find out is to give this a trial >
http://us1.trymicrosoftoffice.com/default.aspx 
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I got a message "Generic Host Process for Win32 Services has encountered a problem and needs to close".
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Let me know if it happens again
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I suspect it is a false positive
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Put the file to the test >
http://virusscan.jotti.org/