Hold that thought. We've had clients try to design their book interiors and book covers in Microsoft Word, and invariably, it leads to headaches. Our clients complain of "text moving around" and problems formatting headers and footers in Microsoft Word files. Would you dig a basement with a spoon or a backhoe? Using the appropriate tools for book production saves you time, money, and misery.
We use professional page layout software: Adobe PageMaker, InDesign, and FrameMaker. These tools are expensive investments, but they are designed to do the job of designing, formatting, paginating, and indexing large projects such as books. In these programs, you can nail down a design and easily revise it. You can insert index markers that flow with the text as text and layout changes during the proofing process. You can easily import graphics and make author's and editor's revisions.
For graphics design and photo manipulation, we use Adobe Illustrator, FreeHand, and Photoshop.
All of these programs have a high learning curve. It takes practice to learn to use them creatively and efficiently. If you don't have the time to learn the ins and outs of these professional page design programs, take your project to a book production specialist.