A family of Microsoft word processing software products for creating web, email, and print documents.
I just discovered something weird. File com.microsoft.Word.plist is continuously being recreated in the user's /Library/Preferences. Even clicking on another document or switching to Word creates a new instance of the file, and the old version gets deleted. It's not a write update, but a deletion and creation of a new file. (This is easy to confirm by highlighting the file in the Finder—the highlight goes away and a new time stamp is shown. Other applications also do this, but not constantly like Word.)
In addition, if the .plist file is already open in Word, this produces an "out of memory" error (?).
This could be happening
TM runs and attempts to backup that .plist file (it's sure to be a new version) but since you are working and clicking, Word is trying to delete it and create a new one. That's a potential source of conflict.
Something similar happens with .tmp files. When you save a file, a .tmp file is created to reflect the current contents of the file, then the saved version of the file is deleted and the .tmp is renamed. In your case, this renaming does not happen and you are left with the .tmp file. (See Description of how Word creates temporary files.) Why is this not happening? Perhaps because Word cannot access the .plist it so repeatedly creates?
The paths are HD_NAME/System, HD_NAME/Applications and HD_NAME/Users/YOUR_NAME/Library (also called ~/Library), but I would start smaller, with just HD_NAME/Users/YOUR_NAME/Library/Preferences (a.k.a. ~/Library/Preferences). Maybe excluding your Preferences folder is all you need. I don't know if TM lets you specify individual files, but if so then start by excluding the .plist file named at the top.