Office starter 2010 & Microsoft SkyDrive

I wonder if Norton Internet Security has caused the following problem. Office Starter 2010 stopped working. I went into control panel and repaired the program but it still doesn't open. I tried to open an excel document saved on Windows LIve SkyDrive. I get a message that 'Microsoft Client Virtualization Handler' wants to run a program on my computer. If I click 'allow', the program hangs. If I click 'don't allow' the excel document opens and I am also able to create new documents. I wonder if NIS is blocking some communication with Microsoft necessary for the click-to-run applications.