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Unable to open word files when the site has been gioven web level anonymous permission and even the library is given anonymous acces but still prompting for login credentials for users.Please help me out with this regards. Thanks in advance.

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Check out this post - SharePoint public-facing website and Microsoft Office documents - to disable client integration and remove the OPTIONS verb from the web config.

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Second that - I've had the same issue with a public facing SharePoint 2010 site that allowed anonymous access to download documents. I think there were a couple of verbs that needed disabling - PROPFIND I think was the other verb. – marcus.greasly Jul 3 '12 at 1:03

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