Since I mentioned in my reply to Peter my evolving method for outlining in MS Word, I thought I would post a screenshot of it. What I do is set all the heading styles to normal text (with first line indentation), and then I use Outline View to do my writing. It appears in hierarchical format, but when I switch to draft view, the same writing appears as unified "body text." Here is the (hastily prepared) screenshot showing the same text in Outline View and Draft View (there should be a zoom button on the upper right):

http://is.gd/41N8h

or:

http://picasaweb.google.com/lh/photo/oW2dPQ1XoLtbeCWMVYSefA?authkey=Gv1sRgCMC30IXehaWYXA&feat=directlink

(The actual text in the screenshot explains a little further why I find this method valuable.)

Lucas