A family of Microsoft word processing software products for creating web, email, and print documents.
It's not so much the video card as the video driver. The video driver is reposonsible for painting the screen. If there is a wierd interaction between an app, like Word, and the video driver/slash card then, presto chango something is missing. The thing is, you say the insertion point is still there, so Word hasn't lost it, but the video card/drive has. The problem is in video, even though it may be triggered by Word.
Actually think I've seen similar problem on my machine, losing the insertion point. I've got dual monintors too, and I've found that just mousing over to another app in the other window, clicking on it and then clicking back in the problem app. It's a "voodoo" fix (ie "it works, but don't ask me why..."). I've found it annoying, but not fatal.
Try updating your video card driver. It hasn't worked for me, yet, but I keep on hoping.
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http://office.microsoft.com/en-us/outlook-help/learn-where-menu-and-toolbar-commands-are-in-office-2010-HA101794130.aspx - Silverlight applets Mapping 2003 menu to 2010 ribbon for all Office apps.
http://office.microsoft.com/en-us/training/HA102295841033.aspx -Flash Applets mapping Office 2003 menus to 2007 ribbon.