Solution to the envelope question:

Simple method: You unprotect the template and add an envelope to it using
the envelope wizard's Add to Document button. Then replace the address in
the envelope with REF fields referring to the address information in your
form. Then reprotect your form. This way, every document created with your
template will have an envelope built into it.

More complex method: Write a procedure (macro) that unprotects the form,
creates and prints the envelope, deletes the envelope, and then reprotects
the form. Attach that to a menu command under the Tools menu or a button on
your toolbar.

As far as the formatting goes, this is a drawback of protected forms. You
could set up unprotected sections which would allow use of bold, underlining
or italics. You may also want to look at <url:
http://www.mvps.org/word/FAQs/MacrosVBA/SpellcheckProtectDoc.htm>.