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If it didn't work in safe mode, it might be worth doing some easy checks to verify that your installation was correct. You should look for the files APA.XSL and Chicago.XSL on your system. You should find them in a directory \Bibliography\Style. If you can't find them there, then they aren't installed correctly and you will indeed have to uninstall Word followed by a complete reinstall from scratch. Mind though that if the files are there, there still might have been an error during the installation process and you might still be required to do an uninstall and reinstall.

I had this same problem after I mistakenly turned on "Smart Tags."  Once I turned it off, I clicked on the citation and changed something, then changed it back so that the citation would update.  It worked after that.

I had the same problem in Word 2010 and found it was related to file trust settings.  File, Options, Trust Center, Trust Center Setting, File Block Settings, Web Pages had to be unselected, meaning not block.  This setting also stopped the Mail Merge feature from working.

n general, you'll want to find your copy of Normal.dot (or Normal.dotm) and make sure that it is only you that can make changes to it. Load the file directly in Word, and then make your configuration changes. Save the file again and then—for added protection—get out of Word and make the file read-only.

Of course, the problem may not be in your Normal.dot file at all. It could be that somehow the Registry key used for some of your Word settings has become corrupted. The only solution to this problem is to delete the key, restart Word, and then make your settings again. Follow these steps: Exit Word. Start your favorite Registry editor. Locate the following data key. (This data key, as shown below, is for Word 2003. If you are using Word 97, replace 11.0 with 8.0; for Word 2000 replace it with 9.0; for Word 2002 replace it with 10.0; and for Word 2007 replace it with 12.0.) HKEY_CURRENT_USER\Software\Microsoft\Office\11.0\Word\Data Rename the entire key to something else, or simply delete it. Close the Registry editor. Restart Word.

Making Word Remember My Settings http://word.tips.net/T003926_Making_Word_Remember_My_Settings.html Summary: Ever had the experience of setting some configuration option in Word, only to have the option revert to a different setting all on its own? This can be caused by any number of reasons. (This tip works with Microsoft Word 97, Word 2000, Word 2002, Word 2003, and Word 2007.) Locate the following data key. (This data key, as shown below, is for Word 2003. If you are using Word 97, replace 11.0 with 8.0; for Word 2000 replace it with 9.0; for Word 2002 replace it with 10.0; and for Word 2007 replace it with 12.0.) HKEY_CURRENT_USER\Software\Microsoft\Office\11.0\Word\Data Understand that if you delete the data key, you will loose quite a few of your Word settings. Which ones? It depends on your version of Word, but you can get a general idea from the info on this page: http://word.mvps.org/FAQs/Customization/DataKeySettings.htm  

utoCorrect information Storage location AutoCorrect entries shared by all programs .ACL file in the %UserProfile%\Application Data\Microsoft\Office folder AutoCorrect entries used only by Word (formatted text and graphics) Normal.dot AutoCorrect settings (correct two initial capitals, capitalize names of days, replace text as you type) Registry AutoCorrect settings used only by Word (corrects accidental usage of CAPS LOCK key, capitalizes first letter of sentences) Registry