Michael, Suzanne is correct on all counts. The items that say "Click here to ..." or "Choose an item", enclosed in blue shapes, are content controls. The ones that are just black rectangles are ActiveX fields. The fact that you can see the blue shapes of
the content controls indicates that Design Mode is turned on.
There are two ways to fix the form so it works. Which way is preferable depends on whether the form should be usable in Word 2003 and earlier. Only versions of 2007 and later can use content controls.
In any case, first turn off the protection, because you can't manipulate the boxes while it's turned on. Also click the Design Mode button in the Developer tab to turn it off.
If all users have at least Word 2007, delete all of the rectangular boxes and replace each one with a content control, either a Rich Text or a Plain Text control. It appears that you've used a borderless table to align many of the boxes. That's good; if
there is a table, continue to use it, otherwise insert a table (or several tables) and place each control in a separate cell.
The Group content control, which surrounds the entire form and is invisible when Design Mode is turned off, performs the same function as the forms protection would -- preventing editing of the text that's not within one of the other content controls.
If some users of Word 2003 must be able to use the form, then you have to go the other way: Delete each content control and replace it with a legacy form field, and replace each ActiveX text box with a legacy form field. (ActiveX controls are really not
very good in Word forms and should be avoided wherever possible.) The "Area" item will have to be replaced by a Dropdown form field. Unfortunately, there is no form field equivalent to the date picker content control, so that will have to be replaced with
a text form field.
Be sure to remove the Group content control by clicking the Group button in the Developer tab and clicking the Ungroup item in the menu. After all the entry points have been converted to form fields, apply the "Filling in forms" editing restriction to make
the form fields work.