You've probably seen books that started each chapter with a large letter. If you want that same effect for your work documents (say, an annual report or brochure), this is easy to accomplish in both Word 2007 and Word 2010. Simply select the paragraph where you want the drop cap (as these giant letters are called), go to the Insert tab and then click the Drop Cap button:

Drop Cap menu

Pick which style you want (Dropped or In margin) or select Drop Cap Options to make fine-tuned adjustments:

Drop Cap Options

If you ever want to remove the drop cap, select the paragraph that contains it, return to the Drop Cap button and select None.

Suzanne