If it works for you & can do everything that you need it to, then ok.
Try clicking on the tools menu, track changes, & then , highlight changes. It has been quite some time since I used office 97 so I don't know if it is there but if it is it might be your problem. In 2000 & newer versions your can have word track & highlight any changes that you make so that anything deleted isn't really deleted. If this is turned on (just not displayed) then turning it off might save some space. In 2000 to turn it off you go to that menu & uncheck "track changes while editing". However with personal experience I only know of word document files being very large if it is either very long or contain extremely large pictures even if they don't seem to be large. If this doesn't help then I don't know what to tell you.

On a side note, how are you finding out how large your files are? What is about the typical file size for you? What might seem large to you, might just be normal for word documents.

__________________
For best results please:
1) State your OS(s), any software involved in your problem, & any major updates (i.e. service pack, version, edition, service release, roll up, beta release, distribution [Linux], etc.) to your OS/software as applicable to your problem.
2) For hardware issues also provide your system information: RAM, processor, etc. in addition to your OS.
3) If you have more than one OS on your computer, how does your problem relate to your other OS(s)? This is especially important for hardware issues.
4) Provide as much detail as possible, being specific as even the most minute detail could help others help you solve the problem. Please tell us what you have tried. Please tell us the make/model of your computer.
5) Respond with the result(s) of the suggestion(s) from the other users to provide feedback, even if this only means saying "this worked!"
If you don't know your system information please consider running our hardware scan and post or PM me your link.