Your problem is addressed by the following KB article.
http://support.microsoft.com/default.aspx?scid=kb;en-us;827732
"The Command Cannot Be Performed Because a Dialog Box Is Open" Error
Message When You Double-Click to Open a Document
SYMPTOMS
If you double-click a document (for example, in Microsoft Windows Explorer)
to open the document in Microsoft Office Word 2003, you may receive the
following error message:
The command cannot be performed because a dialog box is open. Click "OK"
and then close open dialog boxes to continue.
You do not receive this error message in Microsoft Word 2002.
CAUSE
This problem may occur if you have a Word 2003 template in your Startup
folder that contains an autoexec macro that opens a dialog box.
WORKAROUND
Method 1: Open in Word
To open the document directly in Word, follow these steps:
Start Word 2003.
On the File menu, click Open.
In the Open dialog box, select the document that you want, and then click
Open.
Method 2: Remove the Template from Your Startup Folder
To remove a template from your startup folder, follow these steps:
Quit Word 2003.
Click Start, point to Programs, point to Accessories, and then click
Windows Explorer.
Locate one of the following folders:
Documents and Settings\username\Application Data\Microsoft\Word\Startup
Program Files\Microsoft Office\Office11\Startup folder
Double-click the Startup folder to open it.
In the right Windows Explorer pane, click to select the template that you
want to remove, and then press the DELETE key.
Hope this helps.
Prashanth
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