1. I don't really know, but

2. The "Microsoft Exchange" thing is a bit misleading - what Word is
actually looking for is a "MAPI Profile", which defines various services
including address book providers. However,it seems that the only way to set
up the type of MAPI Profile that Word looks for is to install the full
Outlook, which is probably the last thing you want to do. Even on a system
that had the full Outlook /and/ the Notes client, it would only be possible
to include the Notes client's Address book in that MAPI Profile if Notes
itself provides the MAPI support necessary to do that. And even if you can
do that (if you have such a system, it is probably worth trying), then the
chances are that you will actually be faced with the same problem that
Outlook user have, which is that you tend to have to locate a specific
contacts folder within that profile before you can select any addresses.

3. It is certainly worth checking in Lotus Notes forums to see if anyone has
got anywhere with this one. Unfortunately, it is a long time since I had a
test version of Notes here. I will look elsewhere but I doubt I will find
anything.