G'day,
When you paste into word use the paste special option in the edit menu to set a link to the original drawing.
A word of warning though, if you change the linked drawing in autocad it will change in word when the link is updated.
On our setup we have the layout view set to white and the model view set to black. This way when cutting and pasting there is no need to do it from model space, just select the view port and copy it to word.
regards
sc