A family of Microsoft word processing software products for creating web, email, and print documents.
It’s a setting in Preferences that you need turn off I don't use Lion yet, But from what I've read its in the general Preferences. Think its named Restore or resume.
This doesn't help while you are caught in the error message loop because you can't access Preferences. What cured the problem was what DrC wrote:
THis is what I just did and it worked...don't know how I figured it out... I have a brand new Macbook Pro but migrated the old software...Microsoft Office. Could not get word to work...kept getting the "COM1 Exception Has Occurred" in an "Endnote X1" window.
Go into applications =>Microsoft Office=>Office=>Startup=>Word
In that folder I found a file titled Endnote something or other... I deleted that file, rebooted, and it worked... Or at least it is working so far...