Sorry about forgetting specifying which version I used at the top. My mistake.
I used 2003 at another place and did not have any problems with 2003.

Even when I tried to first save the document as a 97-2003 document and then
work ahead and copy it, it did not work out. It would change the chart/graph
from the way it looked in excel to the way it looked in the word document.
I also found it very difficult to realign the percentage value of chart when
it overlapped with the heading of a graph (sometimes impossible as the
heading cannot be moved outside the chartbox).