What font, how did you install it and how did you remove it and what version of MS Office (Word) and Mac OS X do you run on what Mac?
Have you tried repairing (not running) permissions yet or a simple restart? And does Word start on another, even temporarily created, user account?
To change permissions for MS Word, you select it, press CMD+I and look at the SHARING & PERMISSIONS section of the now open GET INFO window.
To repair permissions, go to Disk Utility, select your Macintosh HD and click REPAIR PERMISSIONS.
OP, since the problem went away in your new dummy account and since the font caches are user specific, deleting the caches should remedy your situation. Onyx (available on macupdate.com and from the developer's www.titanium.free.fr) is one utility that will delete the caches. The option is under the cleaning tab in Onyx (you should only have to select the System and Users and Microsoft Corporation checkboxes in the font section of said cleaning tab). Just run it from your primary account and then reboot.
Onyx normally works for me when I run into similar issues. So I humbly apologise.
Apart from restoring any changes to permissions that may have been altered and re-installing Office and its multitude of updates, perhaps try installing from the attached file? (The original had a few issues, so I regenerated it into a basic, hinted working form.) Word should update whatever damaged copy it has in its cache with the new copy. My copy of Word 2008 on Leopard had no issue even after a reboot, so YMMV. This is the last idea I can think of.