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

Inches wrote:

Before we spent a fortune to upgrade I could pull up a blank word document
and across the top and sides it would have inches. Everyone in this office
has tried to set it up this way and has failed. This is very frustrating.