You may want to confirm this with a Word expert, but I would create the chart
in XL, save the document, then, in Word, go to Insert--Object, and choose
Excel chart.
That depends on the version of Office. In 2000, the chart is pasted into
Word as a complete copy of the workbook.
Here's my favorite technique:
Select the chart
Hold Shift while clicking on the Edit menu
Choose Copy Picture
Use the On Screen and Picture options
Switch to Word
Paste (regular, using Ctrl+V)