Desktop config: Windows XP SP3 + Office 2010 + SP1 activated via KMS

We seem to be getting a large number of cases where the Office 2010 application (Word, Excel, PowerPoint) locks up and just displays 'Not Responding'

The only clue we can see if that in ALL cases just before the Not Responding issue occured the following was logged in the clients event log - there are no other event logged such as application hangs.

Type : Information
Date : 22/02/2012
Time : 10:24:51
Event : 900
Source : Office Software Protection Platform Service
Category : None
User : N/A
Computer : XXXXX
Description: The Software Protection service is starting.


Type : Information
Date : 22/02/2012
Time : 10:24:51
Event : 1066
Source : Office Software Protection Platform Service
Category : None
User : N/A
Computer : G15-16
Description:
Initialization status for service objects.
C:\Program Files\Common Files\Microsoft Shared\OfficeSoftwareProtectionPlatform\OSPPOBJS.D LL, msft:rm/algorithm/phone/1.0, 0x00000000, 0x00000000
C:\Program Files\Common Files\Microsoft Shared\OfficeSoftwareProtectionPlatform\OSPPOBJS.D LL, msft:rm/algorithm/pkey/2005, 0x00000000, 0x00000000
C:\Program Files\Common Files\Microsoft Shared\OfficeSoftwareProtectionPlatform\OSPPOBJS.D LL, msft:spp/TaskScheduler/1.0, 0x00000000, 0x00000000
C:\Program Files\Common Files\Microsoft Shared\OfficeSoftwareProtectionPlatform\OSPPOBJS.D LL, msft:spp/volume/services/kms/licenserenewal/1.0, 0x00000000, 0x00000000


Type : Information
Date : 22/02/2012
Time : 10:24:51
Event : 902
Source : Office Software Protection Platform Service
Category : None
User : N/A
Computer : G15-16
Description: The Software Protection service has started. 14.0.370.400


Type : Information
Date : 22/02/2012
Time : 10:24:52
Event : 1003
Source : Office Software Protection Platform Service
Category : None
User : N/A
Computer : G15-16
Description:
The Software Protection service has completed licensing status check.
Application Id=59a52881-a989-479d-af46-f275c6370663
Licensing Status=
1: 191301d3-a579-428c-b0c7-d7988500f9e3, 1, 0 [(0 [0xC004F014, 0, 0], [(?)(?)(?)(?)(?)(?)])(1 )(2 )]
2: 6f327760-8c5c-417c-9b61-836a98287e0c, 1, 1 [(0 [0x00000000, 1, 0], [(?)(?)( 1 0x00000000 30 0 msft:rm/algorithm/volume/1.0 0x00000000 249335)(?)(?)(?)])(1 )(2 )]
3: fdf3ecb9-b56f-43b2-a9b8-1b48b6bae1a7, 1, 0 [(0 [0xC004F014, 0, 0], [(?)(?)(?)(?)(?)(?)])(1 )(2 )]