Andy,
The General field actually stores the binary of the file does not have an actual file on the disc for that one document.
For example, if you use the Append General command to place a word document in a database you essentially create a new 'file' it is just stored in your database now. You can use the MODIFY GENERAL command to get a cheezy edit window. If you were to edit the source document on the hard drive the document stored in the database would not change. It is an embedded OLE Object (vs Linked)
To answer the first question a really round about way to use the word.application automation may be to simply take the binary out of the general field and write a file to pass into the word.application object. Then you can save the file and use the APPEND GENERAL command to place that new file in the same record (if changes were made) or leave it alone.
i'm unsure how diffucult that will be as I have never done it, but it is an idea. I am just now starting to play with General Fields and the OLEBoundControl myself so all of this is new and interesting to me.
TS