http://shaikhsohail.wordpress.com/2008/09/27/how-to-crack-unprotect-or-remove-document-protection-in-word/

Ever run into situation where someone sends you a read-only password protected Word document, but wants you to make changes?
Here’s how to crack it if you are using the newer versions of Word:

If you are using office XP or 2003, you can change the view to HTML-Code using Microsoft Script-Editor by pressing the [Alt]+[Shift]+[F11] key combination.

Search for “Password” and you will find somethimg like this:
<w:DocumentProtection>ReadOnly</w:DocumentProtection>
<w:UnprotectPassword>19E8E61E</w:UnprotectPassword>

To remove the protection:
-Just remowe those two lines, and after saving the document , the protection is gone.

To remove the password:
-replace the Password, here “19E8E61E”, with “00000000″, save the Document and close “Script-Editor”.

Alternative you can save your document as .html and use a html-Editor