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Just as you might suspect, Word refers to these as "hyperlinks." By default,
they are created automatically in Word whenever you type something starting
with "www." (You can, however, turn this feature off if, as I do, you find
it annoying. To do so, choose Tools --> Auto Correct. On the "AutoFormat as
You Type" and "AutoFormat" tabs, disable the "Internet and Network Paths
With Hyperlinks" checkbox.)
You can also manually insert hyperlinks by doing the following:
1. Select the text you wish to use as a hyperlink.
2. Choose Insert --> Hyperlink (or press <Ctrl + K>).
3. The Insert Hyperlink dialog box will appear. In the "Link to file or URL"
textbox, enter the path to the file or the web page URL. Of course, you can
also use the [Browse] button to search for a file.
4. Click [OK].
By the way, you can also create hyperlinks to "named" spots in the same word
document (a.k.a. bookmarks). When you use Word's TOC, Index, Footnote, etc.
features, these bookmarks and related hyperlinks are created for you