The Illustrator image in WORD showed correctly on the screen and was not upside down and backwards until printed. Microsoft's bug per Jon's link sounds like the image is reversed onscreen as well.

So, if one wants to insert graphics from Illustrator into a WORD document (for example, a copy of my new cd cover in a notice about the new cd) I guess I need to work around this bug.

The mudcat has awed me again. Thanks, everyone.