The first issue is a standard problem, that we see about every two months. Go into Tools>Options>Edit and check Typing replaces selection.
Sometimes, it gets unchecked and then you get what you see.
Please tell if the second issue persists after this change.
In MS Word 2003, if I highlight a word/paragraph and press the Backspace button it doesn't delete the text. If I highlight a word/paragraph and type another word it doesn't delete the highlighted word/para. I'm forced to use the Delete button now. The Backspace button used to be my go to button- loved it. In Firefox, Windows, anywhere else I can still use Backspace as before; only Windows has this problem.
Another problem that I just notice is that I can press Tab to indent a paragraph, but when I try to use Shift+Tab to bring it back it simply pushes the text further to the right, as if I'd just pressed Tab again. Again this is only in Word. Maybe related?
I must have made some change but don't know what I did. I really don't remember doing anything out of the ordinary... Does anyone know how to change this setting?