I'm sorry you are having trouble with SO2.
In SO2 it is not possible to open password protected Word DOC, Excel XLS, or PowerPoint PPT files. You can open password protected Word DOCX, Excel XLSX or PowerPoint PPTX files in SO2, but if you make any edits and save the file, the password protection will be disabled.
Support for opening password and working with password protected MS Office documents is something we are definitely looking at for the future, particularly for the xml formats (docx/xlsx/pptx).
Thank you for using the SmartOffice forum.