Joe, Where you now have UFT Editor is where the path to Word should go. You can only have one at a time. Open the Editor Choice list and select Microsoft Word. Best to click on Browse, then find the folder where Word is and then the .exe file. The path will contain the method used for a old style path name. Max 8 places. for each folder/file.
Some have reported a problem with Word in Office2000 when the program is started. If this happens uncheck Auto Launch Editor. Then you will get a box to save the file in. Save it then open in Word.