When you open a Microsoft Office Word 2007 document that is protected by a password on a network share, the document is opened as read-only. You expect to be prompted for a password when you open the document.
To resolve this issue, apply hotfix 956795 on the computers that have the document opened. For more information, click the following article number to view the article in the Microsoft Knowledge Base:
956795 Description of the Word 2007 hotfix package (Word.msp, Wordconv.msp): August 26, 2008