Word 2008 is incompatible with Spaces.The worst problem is that the file just disappears sometimes, and when it doesn't disappear, the cursor blink will disappear, giving the user no indication of where he/she is in the document. To continue to work with the file, one has to exit Word, re-boot the application, and open the file again. As a work around, I tried re-assigning Word to space one (which it seemed to move files to sometimes, whether I wanted it to or not; it was assigned to space two of four), and reboot the computer. It didn't help.

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If you ask microsoft, Spaces is incompatible with Office ;)
They claim it's Apples problem and (also they don't say it out loud) Apple is unwilling to fix it. Seems like no one wants to take the blame ...

See here:

http://www.microsoft.com/mac/help.mspx?target=c3f299e3-aa15-40f4-b3cc-1a6e9eb38cf81033&clr=99-4-0&ep=11&CTT=Category&MODE=pv&locale=en-US&usid=0f7ed450-1b63-4b7e-9733-146430521c0b

or lengthy technical explanation from an engineer here

http://www.schwieb.com/blog/2008/10/23/risks-and-rewards/


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