perhaps ignore a little the standard search microsoft forum response above for the moment, the problem may lie with apple, as I doubt these problems occurred with snow leopard and previous, as its the new OSX file versioning autosaving features that seemed to have cause allot of issues not just with office, my clients cant stand the lack of "save as" for instance, these new autosave features also has a hidden ability to lock files older than a certain age hidden within time machine preferences this might and I say "might" be the issue in question although "blocked" is more unusual in contrast to to the more common "locked" as an error, follow the following points in order >
1: just check this article to see whether it may help with your issue.
http://www.maclife.com/article/howtos/how_disable_os_x_lion_file_locking
2: do the standard updates software routine to both office and osx you can, ie to 10.7.5 for lion for instance.
3: do the standard disk utility permissions repair, although this sadly only affects, files other than user folders, user folder permission repair can be done but is more complicated.
3: some with this issue recommend turning off time machine backups completely, as it also seems to interact with this issue, test this ?
4: Note also lion and mountain lion have changed and tightened quite a bit the permissions and user control over OSX and file locations etc, for the endless over perceived security risks out there, meaning for instance lion will no longer let you save files to root without putting in your password etc, so Might I suggest also making sure that where your saving your word documents is within the user folder ? and see whether that resolves the issue. ie the file saving location in question maybe the issue.
5: Sadly if you recently did an "upgrade to Lion", some Software issues may also resolved by reinstalling the said software afterwards, negating the point of an upgrade install, but anyway … as that can sometimes resolve issues with software from a Lion Upgrade.
further : if this is related to a temporary file save location within the application package as some software makers seem to do ? then permissions repair may have resolved it or it may require a microsoft update to the office if so, I thought doc temp files as regards microsoft documents were saved alongside the original file ? could be a temp file elsewhere though perhaps in the Microsoft folder in the user>library>application support maybe the issue stems from permissions there ? a search can reveal how to repair the permissions on the user folder which cannot be done through disk utility as standard.