A family of Microsoft word processing software products for creating web, email, and print documents.
Well, the key issue is that you're attempting to run 8 year old, discontinued software (most recent 12.3.6 update published 3 years ago) on a leading edge version of the operating system. As of April 2015 all support for the deprecated Office 2008 product was withdrawn... those are the reasons why you were encouraged to upgrade to a current, supported version of the software.
I do not have Office 2008 installed on Sierra so I can't offer any explicit suggestions relevant to your original issue other than replacing the Normal template as well as the Preferences file.
I'm not sure what you mean by the second concern, but how the Dock is managed is a function of OS X, not the individual programs you use. If you have questions concerning how those functions operate in the 12.1 release of the operating system you may want to look into the Mac Help or address them to the Apple Support Community for that release of OS X.