To start, most of the lines you are seeing are the result of Word Options | Advanced | Show document content: "Show text boundaries" and "Show crop marks". Turn these off first. Then, perhaps post an updated screenshot so we can see the result. I have never seen the horizontal lines which seem to be before/above each new paragraph (e.g. above "Asd", "fasdaf")
As Karan suggests, your "strange spacing between the rows" might just be a property of the Style you have applied (I see a style "14 Indent.." applied). Try applying Normal, does that get rid of the horizontal lines and spacing? In fact, maybe some of these are the result of a style's border e.g. Modify Style | Format | Border. While you're at it, detach any templates (such as 'blank') or make sure you create a new document off Normal and not blank.
If this doesn't help, standard troubleshooting applies...
- Rename the Normal.dotm located at
%appdata%\Microsoft\Templates. If relaunching Word still shows these horizontal lines, then...
- Export a backup and then delete this registry key:
HKEY_CURRENT_USER\Software\Microsoft\Office\14.0\Word\Data. If relaunching Word still shows the same behavior, then... (you can re-apply the registry file you backed up)
- As Tom mentioned, get rid of any add-ins. I don't think Nuance is contributing here but it could be another one in your "Add-ins" tab. To disable: Word Options | Add-ins, Manage COM Add-ins, and uncheck each add-in to disable. Also - you may want to remove any STARTUP templates from
%appdata%\Microsoft\Word\STARTUP and from Program Files
Microsoft Office\Office14\STARTUP. (Alternately, you can uncheck these from Developer tab | Document Template button.)
If still same behavior after all of this, I'm at a loss as to the grid between the paragraphs, other than it being a Border property of the applied style.