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Symptom

User not able to open the Word document in Word Web App | View Browser received Error: "Microsoft Word Web App - Word Web App encountered an unexpected error."  while connecting to Office 365 environment from a Windows XP SP3 / Office 2010 / IE 7 with Silverlight Add-On enabled

Cause

The issue is caused by bad font present on the Workstation.     In addition, there is known issue in Office 365 environment | Word Web App | View in Browser when Silverlight is enabled in IE 7

Resolution

Following are two options were provided and customer chose Option 2 to  resolve the issue:    

1. Disable Silverlight Add-On from IE | Manage Add-ons.    The issue to be addressed in future service update to Office 365.

2. There are inconsistencies/corruption in the fonts installed on the client system.  Font inconsistencies in this context can be defined as fonts registered in the system (stored in the registry) that do not have the actual font files on the disk any longer.  For example, install a font file, then remove the font file only (without performing the uninstall).

The issue was fixed in the interim by identifying the fonts that are in an inconsistent state and re-install them.  To identify the fonts, please navigate to http://blogs.msdn.com/b/radugrama/p/test.aspx .  The page will load and display a list of the issue fonts.  Please note that these solutions apply only to Word documents.  If you experience issues with other type of documents we will need to look at those issues separately.