Why does Word 2007 ignore most of my misspellings?

Today I typed “condiminium” and it is not flagged as incorrect. Then I intentionally typed “reather” instead of rather. Word did not flag it.

Spell check is enabled. I clicked on spell check. It flagged “Rohit”, a man’s name. But “condiminium” and “reather” were ignored.

My custom dictionary has only one word – my last name.

I can’t believe they came out with Office 2010 when I’m not done hating Office 2007!