I think you need to bite the bullet and do as Diodorus Siculus suggests. It would appear that when you installed Works 2005 its own "updated" version of Word has overwritten your existing version. I suggest that the following method should have a good chance of success:
Uninstall Works 2005, Uninstall Word if it is still listed in Add/Remove Programs. Restart the computer in case any changes need to be written to the Registry. Install your original version of Word. Once you are happy this is working as expected, install Works but choose the Custom Install option. You should be presented with a list of components to be installed so choose everything except the Wordprocessor. If the installer follows the pattern of the other Microsoft Office products you will find an option with a red cross labelled "Not available" and this is what you want for Word. Works should now install without overwriting your own version of Word.
The works suite was installed by me onto a brand new computer, I dont remember seeing Word already onit. Although I did assume it wouldnt be and i had to install the Works Suite. Guess I had better uninstall and try again
I think I finally understand your question. You have installed Works Suite 2005 and the Word processor has been working fine until it has suddenly lost some of its functionality. It appears that Word required activation. click here and browse down to "General problems with the Word Activation process" to see if it throws any more light on the problem.