Brogrim,
How did you 'merge' the report? If it was a mail merge, I would think you would have to set up the formatting in the Word template.
If you 'output' to Word, the formatting doesn't carry over (at least that I've seen). There's an excellent FAQ on getting Reports into word using bookmarks. Again, this requires formatting in Word.
FAQ703-760
John
Use what you have,
Learn what you can,
Create what you need.