This is a classic problem people have. If you want to edit a page on either Office Live or Office SharePoint place you clicker over the object and wait. A window with options will pop up (in time).
You then have to select Open in Microsoft Office Word. The grey box to the right is Google Picasa 3 showing I have just made a screen capture. Sorry Microsoft but when you have a tool this cool I will use it.
If you just double click on the name you can view but not edit the file.
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