On Display Properties >> Settings, make sure that your color depth is 32 bit...  it looks like your display's set to 256 colors.

However, that doesn't really make sense either b/c you have true-color icons on your taskbar...

I have never seen Office 2003 do this, unless it were set to 256 colors.  If you could give a screenshot including the toolbar and menu at top, it may be helpful.

Also, be sure to restart if you haven't already Smiley