If this happens to you, exit WordPad. Use Regedt32 to navigate to:

HKEY_CURRENT_USER\Software\Microsoft\Windows\CurrentVersion\Applets\WordPad\Word6

Delete the Layout2 value name in the right hand pand.

When you start WordPad, the toolbar should be visible.

NOTE: You may also have to delete the LayoutAux2 value name.

NOTE: If this happens to your W95 clients, delete the Layout value.