If someone tells you to use Pages to edit Word documents, I'm afraid you got bad advice. Pages has many features that will not show up in Word documents, and Word has many features that will not show up in Pages documents.
Pages is not built to edit Word documents, which is why you have to Export to Word format and cannot Save. You may like it or not, but that's the way things are.
If you are dead set on using Pages for your MS Word documents, there is a hack at Lee Findlow's site.
Otherwise try OpenOffice and NeoOffice. They are both free. If you do not like them, but prefer something that looks and feels more like MS Word, try MS Word.
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If you are new to OpenOffic.org and need some help and support, check out Plan-B for OpenOffice.org. It is support for non-technical users.
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