Thanks to Joe Stagner to provide the fix.
I love Office 2007, but recently I've had big problems with Word.
1.) I can't select text.....
It seems this is a common problem with a number of add-ins. In this case it was the Word plug-in for Snag-It 8 from TechSmith - when I uninstalled it, mouse support came back. Note that this is not JUST a Snag-It problem. A bit of searching on the web reveals that MANY plug ins can cause this problem.
2.) The more irritating but was that Word always crashes on exit. I tried disabling and removing all the add-ins, deleting all the auto loaded templates, even uninstalling and re-installing Office 2007 with no success. Just about the time I was about to commit to waste my day rebuilding my day - I found the answer in a newsgroup archive.
DO THIS !!!
1. Start Regedit.
2. Go to HKEY_CURRENT_USER\Software\Microsoft\Office\12.0\Word\Data
3. Right mouse click on the "Data" folder and delete it.
4. Close Regedit.
POOF - Word 2007 is back to it's awesome self !!