Thanks its stopped crashing 🙂
I think it was the test drive that was the problem as you suggested.
WORD startet working fine after i realised there is an uninstall feature under the Microsoft Office/Other Tools folder that does a thorough clean up (as far as i can see), it deleted something called "Microsoft Office X (including test)"
I had previously tried deleting word and re-installing it myself without success. I think i didnt delete all the files and preferences.
I also cleaned up the font issue with Linotype FontExplorer X.
The only problem left was because of a spelling and grammar tools issues, but the solution for that can be found here in case someone else has that problem 🙂
http://word.mvps.org/mac/SpellCheck.html#Fixes
Thanks 🙂
P.s I also got more RAM so that helped as well it was terribly slow before!