Kathy, I have no problem using print-to-file with PAF5 and Vista. I do it all of the time. I just need to make sure I have the checkmark beside "print to file" and replace the "*" with a real file name, and the report comes up in Microsoft Word.
It is remotely possible that no word processor on your computer is associated with .rtf files, so Windows wouldn;t know what to do with it. To find out, use your word processor and save any file as TEST.RTF, then close your word processor and double-click the TEST.RTF file to see if it will open and what opens it. If it opens in Wordpad, you need to change the file association so it opens in Word.
Dave's suggestion to install a PDF writer is excellent. Unlike RTF, PDF will be the same on all computers. One quirk with PAF5 in Vista is that you cannot choose a printer other than the default printer. So set your default printer to the PDF writer before printing to PDF.