If a computer comes with Microsoft Windows XP Home Edition with Service Pack 3, does Word come installed too?

No, Word is part of Microsoft Office which you have to buy and install seperately.

There are other alternatives though, Open Office is free and aparantly works well (never used it personally) you could try that.

Here is the Office 2007 page that tells you about the prices: http://office.microsoft.com/en-gb/suites/FX1016777...

You can download a trial version to see if it will run ok on the Netbook, but that will only last for 30 days: http://us20.trymicrosoftoffice.com/default.aspx?cu...

There may be a trial version, but Microsoft Office doesn't come pre-installed on any computer that I know of unless it is ordered with the computer. Microsoft Office is a rather expensive piece of software.

There is an alternative. It's called Open Office. It is a very functional set of office tools that is compatable with MS Office file extensions. It can be downloaded, for free, from:

http://www.openoffice.org/