In Word, click on Tools | Options | General | Measurement units:
Inches | OK. If Word won't let you change the setting there,
then see http://support.microsoft.com/?kbid=299339 "You cannot
change ruler measurement unit from character units after upgrade
to Office XP" or http://www.gmayor.com/Character_Units.htm .

Dave S. wrote:

After installing Acrobat 7.0 Standard, Word defaults the measurements of
margins to points, not inches. Even the ruler atop and alongside the page is
in points. How do I change this back?