No CAESAR II 5.00 does not need "outword.dll" registered with the OS. The functions that required this were rewritten for Version 5.00 to avoid this requirement.
This is a comment from another user, received today:
I was suspicious about dictionary and grammar in Word, I went to Word and click to disable dictionary, spelling correction and grammar automatic warnings and corrections. Before this I deleted the Normal.dot file. And it worked fine!!!
I think Word was shocked trying to correct and warns about “too many word errors” and formatting the document at same time.
You also said you dragged all the reports to the Wizard. If you're having problems don't send this much data,
you're choking Word. Process the reports one at a time. Another option is to put more RAM in your computer, but this is usually out of the question.