You have to open the .doc documents in a doc compatible program... For instance Microsoft Office... Open then in another viewer that can't properly view the .doc documents will make the .doc documents appear like garbled!

Try open the documents from Microsoft Word and Microsoft Excel and see if that solves the problem!

(It may be the various Office IE addins/plugins are not enabled when viewing local content. Under all circumstances, try view the files in newest versions of Excel and Word)
From the snippet you have shown it does not look like A1WD touched the documents in any way.