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In Word, open the Drawing toolbar (right-click the upper toolbar, select Drawing). The Drawing toolbar generally displays at the bottom of the screen, beneath your document.
Click the Rectangle tool in the Drawing toolbar, then draw your rectangle.
Make sure your rectangle is selected (it'll have little 'empty box' handles), then click Draw (far left on Drawing toolbar), click Change AutoShape, click Basic Shapes, then click the rectangle with the soft/rounded edges.
Unfortunately, there are no fine-tuning capabilities for changing the angle.
As an alternate method, you could draw the shape you want in a graphics program, export as PNG (high-res PNG are pretty clean in Word and other Microsoft applications), then use Insert âº Picture in Word to place the border. To resize proportionately once it's in Word, hold the SHIFT key while you drag a corner of the image.
Posted at 7:29 pm Apr 3, 2006 EDT
Oh, reading this again and think I misunderstood.. You want to wrap text, not create rounded corner on rectangle. Duh. LOL! I guess I need some caffeine today.
For text to wrap AROUND an item, place the item (Insert âº Picture / from file or clipart). You can also draw shapes such as rectangles (for shape tracing only, create a clear/white based shape), then place the item near the text that is to be wrapped around it. You can either move the item with your mouse, CTRL-arrow, or move by entering a specific dimension/location on the page.
Next, double-click the item.
The Format AutoShape / Object window should open. Click the Layout tab. Select square or tight to have your text flow around the item. Click Advanced and fine-tune the item's position.
Hope this is what you were looking for.
It's a bit clumsy in Word, but is somewhat doable. It's much easier in layout applications like Freehand, InDesign, and Illustrator.
Posted at 7:42 pm Apr 3, 2006 EDT