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I heard that Word's revision features were on the "questionable" list.
That is, responsible for occasional problems.
I use ComponentSoftware's CS-RCS. One noteworthy thing is that it uses
Word's revisions feature for comparing and merging of Word documents
(anything else, it uses its own GUI diff program).
So, CS stores each revision in an RCS archive. But, when you view two
revisions (or a revision and the latest working file), it creates two
temp files and uses Word to compare them. You can accept or reject as
normal.
If you do go the way of RCS, I'd suggest either CS-RCS or CVS (which I
have started to investigate).