I don't think you're doing anything wrong. I tried doing the same thing on my pc, but couldn't get it to work, either. I think there are limitations on the report (or on the embedded object in the report) that are keeping it from showing the way you want it to.
If it were me in this situation, and I needed it to be presentable quickly, I'd copy and paste the text from the word document into the report. And as the detail section won't go any further than 22in, you may need to make more than one report to contain all the info, then display them as subreports.
Hopefully, someone else has a better answer. Good luck.