You can use the Styles pane (Ctrl+Alt+Shift+S) to create styles in Word 2007.
Just click the New Style button. Similarly, you can right-click a style
listed in the pane and choose to Modify it. For easy access to all styles,
click the Manage Styles button. Make use of the Edit tab in the dialog box.
But it's hard to see what styles you would need for a short story that
aren't already built in. I can't imagine needing more than, say, Title, Body
Text First Indent, and a few others. They can be modified as desired. See http://home.earthlink.net/~wordsintotype/Template.htm for a sample
manuscript template.
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Suzanne S. Barnhill
Microsoft MVP (Word)
Words into Type
Fairhope, Alabama USA http://word.mvps.org