Welcome to TS, Ron!
(are you the writer, BTW? I'm the admin who approved your registration, so I saw your email addy
)
This will help with some of the questions: http://grok.lsu.edu/Article.aspx?articleId=74391.
1. A little confused here - are you saying that with Word already open, how can you create a new file on the desktop/folder without selecting a location for the file? You can create a new file easily (command + N) but it's not saved anywhere until you actually save it. If you click in a location outside of Word, then you'll be in the Finder, not Word and right-clicking won't do a thing in Word (only in the Finder)
2. Command + Y
3. Draft Layout will show just a line between the pages
4. I agree - the size is too small if you have a big monitor!
Found this: http://groups.google.com/group/microsoft.p...b03716790?pli=1 - See Daiya Mitchell's post about editing the .dotm file.
I think that might do it. (I'd copy the existing one first and save it somewhere on the desktop and then edit the one in the Library...just in case.)
5. Are you adding a background color via the Formatting Palette->Shading->Add color? I've tried it on a couple of documents in Draft mode and the formatting didn't change. I didn't have anything complex in there - what is changing for you? (Screen shots can be posted here and might help)Hope that helps a bit. 
Just a quick addition - Daiya's instructions worked - I just did it! 
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Use File | Open to open your Normal template at [username]/Library/Application Support/Microsoft/Office/User Templates/Normal.dotm. Make sure to use File | Open from within Word. Set the desired size (and view? and zoom?) you want documents to be. Type a space and then delete it--the point of this is to make sure Word thinks there is a change that needs to be saved, without actually leaving text in Normal. Save and close. All new documents created henceforth should use those view settings.
It's been a minor pet peeve which I never thought about actually fixing, so thanks for asking the question Ron!!
First, Welcome Aboard, Ron!
Second, congratulations on switching! While I've heard of some going back to Windows, they are extremely rare. 
Third, we have some folks well versed in Word on the Mac as well as on Windows. So, no matter what I say, wait and see if you don't get some more usable help! 
Fourth, I'm not a Word user, much less a Windows fan (although I do have some window screens...).
But, I never let inexperience or lack of knowledge prevent me from giving advice. So...
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Instantly opening a new file
The basic method of creating a new document/window/etc. in every Mac program is by pressing command+N. However, where it will be created is set either in the programs preferences or when it is Saved, the first time. Word, of course, may have another way to do everything at once. 
BTW, get used to the "command" key. That is the one that will usually replace any "Alt" key combo you used in Windows. If you know an 'alt + SomeKey' in Word, just try it by swapping the 'command' key for the 'alt' key. Your 'command' key may have the actual word 'command' on it or what most of us call the four-leaf clover on it. It might even have the Apple trademark (an apple) on it.
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Move cursor to previous location or to beginning or end of document.
I have no idea on the first part, but usually command + one of the arrow keys will take you to one extreme or the other in any document.
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In my setup, 12 pt type in Mac Word is quite small. Is there an easy way to set the default so 12 point is a larger size, so I won't have to manually increase type size each time I open a new file?
Most of the time, fonts look smaller on a Mac than on most Windows/PC monitors. It has nothing to do with the actual point setting, of course. It is simply a matter of the resolution of the monitor. As you probably know, LCD monitors are not very good at using resolutions different from their native one. But there are a couple of suggestions:1. Setting a default in any Mac app is usually done in the apps Preferences. Those same settings are usually called "Properties" in a Windows app. There should be a menu item in the "Word" menu called "Preferences (command+, [comma] should bring that up, also). Of course, Word may also have individual preferences for each document you create. 
2. If Word has a magnification option on its windows (100%, 125%, 150%, 75%, etc.) try using that.
3. Different fonts are actually more or less legible at the same point settings. You could try a different, but similar font or font family.
4. Use a larger, secondary monitor, at least when at work/home, so you can view a whole page nearer to its actual size.
5. Make sure you have anti-aliasing enabled.
I'll stop there, someone else may have already answered all your questions by the time I send this, anyway!
-In my setup, 12 pt type in Mac Word is quite small. Is there an easy way to set the default so 12 point is a larger size, so I won't have to manually increase type size each time I open a new file?
Go to the Format menu and click Font. You'll be able to change your settings. Then, click Default and click Yes at the prompt.
For a complete explanation, go to Word's Help menu, click Word Help and search for "Set the default font for new documents"