This
is a common issue occurring with people who are using versions of
Endnote below X4. Endnote X4 is the only version of Endnote compatible
with Windows 7 and Microsoft Office 2010. When using a version below X4
in Microsoft Word 2010, the program becomes unresponsive and Not
Responding message occurs. In order to prevent Word from becoming
unresponsive you will need to disable the Endnote Add-Ins.
In the Start Menu go to All Programs and then Microsoft Office 2010 and then hold the Ctrl button and then click on Microsoft Word 2010. A window will be pop up asking you if you would like to run Microsoft Word in 2010 in Safe Mode. Click Yes.

Once in Microsoft Word 2010, select File and then Options on the left hand panel. Go to Add-Ins and then select COM Add-Ins from drop down menu under Manage and then click Go...

Uncheck Endnote from the COM Add-Ins and then click
OK
and restart Microsoft Word 2010. The program should be responsive now;
however, Endnote will still have incompatibility issues with Microsoft
Office 2010. You will have to upgrade Endnote to version X4 in order to
avoid any problems.