Let's start by asking what platform (Mac or PC), what operating system version, what version of Arial, and what version of MS Word, which didn't support ligatures at all until Word 2010.
Given Microsoft's typographic history, and the history of Arial itself, nothing you've said surprises me. If you encountered similar situations with an Adobe Pro font using InDesign, I WOULD be surpised.
To answer your insertion question, right under the comment box is a small link labeled 'insert image'. The image you select will appear at the current cursor position in the comment box. I'm annoyed
- Herb



