Yes I have reinstalled the Office enterprise 2007 and it still hasn't resolved the probem. I can press shift enter and force a new line but its not a paragraph ending.
By the way enter works in all the other MS applications (except word) and is ok on internet and emails etc.
I'm att the doc I was working on when it all went pear-shaped for me (so doa scan before you open it - although it is from a trusted source). Hope you can help - desperate now!!