A family of Microsoft word processing software products for creating web, email, and print documents.
When auto-hyphenation gives nasty results, try INCREASING the hyphenation zone in the dialog Phillip showed you.
Word (on the Mac) uses a relatively simple algorithm to determine where to put the hyphen, but the more room you give it, the better choices it will make (and the wider the inter-word spacing will become). The narrower your hyphenation zone, the less inter-word spacing you will get, and the weirder the hyphenation choices will be.
So it's a balance. Tweak the hyphenation zone width until you get a pleasing result.
I never hyphenate anything, because it makes text difficult to read. Research shows that skilled English readers read by the SHAPE of words and phrases. In the same way as ALL CAPITALS destroys the shape of words, hyphenation (or the inter-word spacing that results) destroys the shape of phrases.
You will slow you reader down (the more skilled they are, the more you will slow them down) and all that extra brain-processing that's going on to re-assemble the text destroys retentivity.
So I don't do it :-)
The typographical stunts that attract the eye to glossy coffee-table fashion magazines actually make their text (if they have any...) very difficult to read. Not that busy academics spend 'much' time studying glossy coffee-table fashion magazines. Or so they tell us...
Bottom line is: if you want to type-set something, suck it into InDesign when you have completed the text. If you get your styles right, InDesign will slurp it straight in, correctly formatted.
Hope this helps