couple of questions:
1. Does MagicView (or any other tool) allow the association of an editable word document with an item ?  
 
you don't need a tool for this.
 
you can attach word file DIRECTLY as ecco item INSIDE ecco.  can be independent or linked to external .doc file.
 
 
MagicView allows associating a VIEW (editible word window) for any file.   The file can be copied to the .eco file's .web directory ("grounding")  with Alt+G.
 
 
you can also COPY the text & formatting of .doc  to create native editable MagicView page.
 
 
 
2. Also is there a way to associate a link to a BOOKMARK in a microsoft word document to an ecco item? For example I would like to have an item in Ecco be associated with a particular part of a long word document. I have entered a bookmark in that document so I can jump to the section in the document ,  if only I could insert into Ecco a link such as  
c:\My documents\My first document with bookmark.doc#NameOfBookmark  
This link works inside word, to hyperlink a word document to a bookmark elsewhere in (a possibly separate) document, but Ecco seems to complain that the hyperlink is not a filename and wont launch word and allow word to traverse to the bookmark.  
 
In the above example, the notation #NameOfBookmark tells word to traverse to the bookmark with the name "NameOfBookmark"
 
 
 
does it work if you put in quotes in ecco's net location folder ?
 
(see also http://ecco.empowers.us/ )
 
 
you should be able to set up easily even a dedicated 'word' jump folder to auto jump.
 
see more on Ecco's native power for folder based launch rules in Ecco's own instructions...