I think it is Excel and Word 2007, could be 2003 though.
If I can't remember the password, but i delete the whole say Word file i guess the password protection can't stop me deleting the file.
That's the whole point of protecting a document, you can't open it, modify it, move it or delete it and so on.
With Word/Excel 2007 click the Office button, click prepare, click encrypt document and enter a password.