Disclaimers: I myself would consider WriteNow running under Classic to be immensely preferable to Word. I'd almost prefer to do word processing from the open firmware prompt. And what I actually use is AppleWorks and I'm fine with it.
Having said that, though, have you looked at the free NeoOffice/J? It is way too much like Microsoft Office for my tastes, but it is commendably, transparently compatible.