computerzworld,
Reading MS Word files can be a challenge.
If you visit here, http://www.linux.com/archive/feed/52385 you will see a series of Linux based applications that can convert MS Word to plain text.
From that output (for instance using Antiword you can use an exec() command to export the MS Word to a plain text file and parse from there.
I have never used this - but there is a commercial addon - PHPWordLib that may also work for you -- and the price at $35.00 it isn't too bad.
There are many other options, however require a ton of additional work, such as using a Java Bridge with PHP and using the OpenOffice Developer libraries.
Best of luck!