In model space, you your "dimscale" and "ltscale" must match or be close to you drawing scale. For example:
if your drawing is at 30 scale, then your Dimscale should be 30 and your ltscale will also be set at 30.
I have had mixed results with inserting a word document as an ole object, the problem seems to be that words that end at the right margin get the last letter cut-off when plotting. For example the word "formerly" plots to be "fomerl" This only happens with words that "ride" the right margin...