You need to save it in Word 2003 XML format (i.e. just save as .XML from Word 2003, or save as Word 2003 XML from Word 2007 or later). Then drag it and drop it on the OSEE Artifact Explorer where you want it to be. You will need to select a suitable artifact type and the correct parser if you want it to decompose the document into multiple artifacts.
I can't remember the exact options for OSEE 0.7. This is now well behind the current development and you will not be able to use the OSEE documentation on Eclipsipedia as this is for 0.9.