Check for the old BASServer.props.old file (before the upgrade) and restore it (you will need to restart Aware IM after that).
Alternatively check the existing settings of the BASServer.props file on your server.
Search for 1099. If the corresponding property says localhost:1099 replace "localhost" with the network name of IP address of the server (you will need to re-start the server after that). This should fix the problem. '
You don't need to change startupOptions.props to be able to run Word unless you are using the old version of startupOptions.props file which had the problem. Please also double check that your startupOptions.props file is in BIN directory. If not, copy the one from SAMPLES directory and modify the settings to increase memory for Tomcat.