Robert- It is possible that you have another conflicting database program that, knownst or unbeknownst to you, is Foxpro based. But it doesn't dound like you have major "speed" problems if you can get UFT to handle a relatively large database and begin exporting RTF reports.
Have you tried deselecting "Automatically Launch Editor" with Winword.exe selected? This should create a file for you without having UFT and MSWord interacting simultaneously. Good luck, John