Yes, that's the way to do it, indeed.
Maybe this settings somehow got stuck into normal.dot. Locate that file in Windows Explorer and then make a choice of:
1. Open it, turn the toolbar off, and save it again (as a profile).
2. Delete it with Explorer. Word will create a new default one. However, you will lose your changes (and macro's) in it (although, of course, you can save the macro's somewhere else). That's why I would start with #1. If that doesn't help, try #2.
If the toolbar returns with a new normal.dot, try (successively!)
3. Repair Office from the Office Setup.
4. Uninstall Word, then reinstall it.
5. Between uninstalling and reinstalling, use the Office Removal Wizard (should be on the CD, or can be downloaded somewhere from Microsoft).
You'll need an CD with Word or Office to do 3 through 5.