Hi there!
In my logic, I have used MS Word as my destination location to download font files from dafont.com. The download happens quickly in Word, but instead of loading the font file, it opens up a new Word document with lines and lines of gibberish typed out in the Courier New font. The actual downloaded font file cannot be extracted and installed from the gibberish. Also, the download happens automatically, leaving me no discernible option to change the destination location. Any expedited help will be fully appreciated...

Again, again, again and again the show/hide extension for known file types issue.
What you encounter has nothing to do with fonts or downloads. Be it here on dafont or elsewhere. It has to do with the settings of your operating system and whether or not you understand your operating system.
Seems you want to run before you can walk.

To install a font, you don't have to use MS Word but Windows.
Read the FAQ : http://www.dafont.com/faq.php#win