OCR is Optical Character Recognition. For clean text, Microsoft Office
Document Imaging is quite effective. In Office XP and 2003, it's in the
Office Tools folder.
Open the tif using MODI -- on my system, MODI is the default application for
tif files. If it's not the default on yours, right-click the tif, and choose
Open With, and see if MODI is listed. If not, then either you didn't install
it, or you have an earlier version of Office.
Once open, choose Tools - Recognize text using OCR. Then Tools - Send Text
to Word.