Just to keep it simple...
There are plenty of sites which list distributions and their attributes. Start with these...Distrowatch
Quick links to all the most popular linux distributions! I recommend CentOS, Debian, Ubuntu, Fedora, Sabayon (just install Gnome, not KDE) and Mint for most users.Linux Distributions from Linux.com
A description of each distribution is provided of each and the main page shows help links.Check out the alternatives before moving (quick links)
If you have decided to make the switch to any mainstream Linux distribution, you will have more than adequate packages for all these tasks installed by default. Unlike Word, these packages support a multitude of file formats.Open Office Replace your underfeatured commercial package, see why.
Abiword A full featured word processor without the extra bulk.
... and if you get an OpenDocument and use word, you might consider getting Sun's plugin for OpenDocument Format instead of emailing requests for... BTW: This plugin is not free software and comes with a usage agreement.
Gimp Give Photoshop a run for it's money, also try Imagemagick