If you have Word already open and have just closed a document and create a
new one, Word has a bad habit of applying the settings of the previous
document window. I have not taken the time to experiment and analyze exactly
what it does--this is just an impression--but I've seen it with other
display issues such as display of nonprinting characters, field codes, etc.
When you start Word from scratch, however, the blank document should reflect
the settings of the Normal template.