Answer
This question was answered on November 5, 2004.
Much of the information contained herein may have changed since posting.
1. I don’t think you can delete the Files that show up on the FILE drop down menu.
2. In Microsoft Word, a password-protected document cannot be recovered if the password for that document is lost or forgotten. Microsoft does not offer a service to retrieve documents to which passwords have been added, nor does it offer any information regarding such services or processes.
For more information about how to password protect a document or form, click Microsoft Word Help on the Help menu, type about using passwords in the Office Assistant or the Answer Wizard, and then click Search to view the topics returned.
This policy is to prevent any damages to Microsoft Word users who rely on the security that their passwords provide. To recover a password-protected document, you must remember the assigned password.
NOTE: Remember that passwords are case sensitive. If you used a combination of uppercase and lowercase letters when you set up your password, you need to use the same combination when you use the password to access your document. Also, before you type your password, verify that CAPS LOCK is not active.
Good Luck!