punki, re the Word file compatibility:

Yes, it should work. Broadly speaking, newer/higher versions of Word will open files saved in the older versions.

Alternatively, the Text (.txt) file can be opened in any version of Word. You could then use the SAVE AS option on the FILE menu and save it as a Word (.doc) document.

FYI - A text file is just what the name says. It allows you to save text, but virtually no other formatting, unlike what you might be used to be doing in Word. It is useful when you want to work with or transmit simple data since the file sizes (see above) are typically a lot smaller than the equivalent Word file.