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In the example above, note the rounded corners and the spacing on each side of the words. How would one mimic this visual style for text in a Word document?

If the rounded corners aren't possible, I'd at least like to apply some automatic spacing around the text, within the shaded area.

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Sorry don't have time at the moment for pictures.

The only way I can see to add the rounded corners is a shape or a Text Box where you change the shape to a rounded box. Insert Menu->Text Box Then Format Menu->Change Shape and choose a rounded box and changing fill. However shapes and Text boxes have problems maintaining place when you change the text around it, especially shapes.

To get the spacing and text shaping , assuming Word 2010 and above the easiest way to enforcing spacing is to insert the words in a table. If you select existing tags then on the Insert Menu Choose Tables, click on the arrow at the bottom, and select convert text to table. Assuming you're using spacing in the separate text option choose other and hit the space bar in the box. You can then turn off borders and add fills etc.

I'd suggest when adding the tags you set them as a specific style which will make finding them useful.

Another suggestion is https://www.techrepublic.com/google-amp/article/how-to-add-an-index-to-a-word-document-using-index-tags/. You can then use Ctrl-H to find all the <XEentries and change them to the style you want. The indexing option is not at all intuitive

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Six years later and I find myself with a similar question, so here's how I answered it. Picture to whet your appetite:

Text with lozenge-style tags

The main text here is 11pt Calibri. The text in the tags is 6pt. Each tag is a rounded rectangle, with inline placement. There are some key attributes to set on the shape - middle alignment for text, 0cm margins and "Resize shape to fit text". (Right-click > Format shape)

format shape

Then the crucial additional step, for fusspots like me is to adjust the baseline alignment. The tag when you first insert it sits too high above the text. So as you can see by the Xes in the image above, I've lowered the alignment by 2pt.

lower font alignment

It helps to have some text either side of the tag, and select the text plus the tag when you change the vertical alignment (under the Font > Advanced menu).

Obviously you can play around with the precise numbers to suit your needs. Once you've got it the way you want, copy and paste the tag wherever you need it, and just change the text inside.

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