Comma splices

Here’s a simplified version of the sentence I'm working on. > Despite what he believed — or thought he believed — he still had to > contend with the truth. Or should I use commas?

Which of the following is correct? 1. No gifts please, we don't need any orchids and we already have a toaster. 2. No gifts please, we don't need any orchids , and we already have a toaster.

I usually either accept or work around Word's grammar suggestions (I hate having red/blue lines in my documents) but this particular suggestion has me stumped. The sentence is "Striding forward... more