Dave, I'm afraid I can't help you with the error that you are getting in Word when you try to load the .wmf file. We've tried on this end with both the Windows 3.1 and the 95 version of Word and have had no problems. As long as you use the Insert Picture option it should work.
With regards to Excel, you can insert the .wmf file using the same Insert Picture option in Excel. One problem though is that it appears that Excell will treat the file as a bitmap and you will not be able to actually use it in Excel (at least it appears that way to me - if you find otherwise let me know).
Word does let you actually edit the picture. Thus with Word you can cut and paste pieces of the report into Excel. However, again it's probably not going to be as easy as you like. If you find any shortcuts, be sure to pass them on.
In the meantime we will be looking into adding a better export for reports so that you could export to an ASCII file that could be better read by spreadsheet packages. Sometime on down the road we should be able to add this feature.