Hi quiet canadian and welcome to our community
Captivate should record that just fine. I would suggest
recording using Demonstration mode with the "Record Keystrokes"
opton enabled.
To configure these, click Options > Recording Options...
> Recording Options tab. Ensure the "Enable auto recording"
check box is selected. Then ensure the Recording Mode is
"Demonstration". From there, look down the dialog a bit and ensure
the "Record keystrokes" check box is selected. Once you do this,
click the "Full Motion Recording" tab. Ensure the "Automatically
use full motion capture for drag-and-drop operations" check box is
selected. (This should cause the highlight to be captured nicely).
Once you do all that, click OK to dismiss the dialog, fire up
Word and load your document, then record away!
Cheers... Rick