Well, from my experience the function of collecting information and creating a word document is definitely doable, the hard part though, at least I think it will be, is the formatting of the "form" that you are trying to make. For example, if you were collecting data to generate a filled out tax form that looked just like the standard tax form, that would be pretty hard to do. The formatting of most forms is pretty tight.
What I have done in the past is take my data, whether from a database or wherever and generate an HTML file formatted however I like. This is because HTML is a file format of MS Office. I don't know if it still is, but at one point I think it was even the default format.
Anyway, all I had to do was create my HTML file and when I saved it, insert the MS Word HTML headers at the top that told Office that, that particular HTML file was indeed a word file. If you didn't, it would get treated like any other HTML file. Insert those magic lines in the header though and bingo! Now when you save it or click on it, with the proper file extension of course (like .doc or .docx), and Word sees it as a long lost child come home.
Hope that helps!