How do I embed a "live” Microsoft Excel chart into my Word document and have it automatically update as the XLS file is changed in Excel?

Answer 1

When you paste your chart into Word, make sure you select the correct Paste Options. Use one of the options that will Link Data.

When your Excel data has changed, go to Chart Design and click on Refresh Data.

This will update your chart.

Answer 2

The first thing to keep in mind is that, once linked, you cannot move or rename either the Excel or Word file without needing to relink the two. That said:

Insert->Object->Create from file->Browse to Excel file->Insert (make sure "Link to file" checkbox checked)

Once linked, double-clicking the chart in the Word document allows you to edit the Excel document.