It sounds like your Word 2000 is displaying in Word 6 format. Try opening the RTF file in Windows Wordpad and see if you get similar results. The answer may be in your Word 2000 menu options.
If Word 2000 is automatically opening the RTF file, try saving it to your hard disk from PAF instead. Your answer probably lies in playing with the Word 2000 menus and compatability boxes, rather than with PAF. Per the RTF Standard, PAF must necessarily send out the report coding in RTF 1.0 coding for older Text Editor programs, as well as updated coding for later model Text Editors. Your Text Editor should ignore the old, and use the new, where applicable. Older Text Editors should Ignore the new and use the old, where applicable.
Or something like that. Good luck with getting it straightened out.