As a test, do this:
1. Open a new doc
2. Type "This is only a test!"
3. Click on the Oval (called Oval on hover), if not visible, go to View, Toolbars, Drawing)
4. Click and drag to position and size the oval on the page (but not on a word yet)
5. Once drawn (about a 2" x 2" oval), right click on the oval and select Format AutoShape and click on the Layout tab and select In Front of Text - this allows the oval to float to any position you drag it to.
6. Single clicking on the oval allows you to resize.
Additionally, you can position the oval by holding CRTL and using the arrow keys to move the oval at a pixel at a click. Moving the oval without CTRL moves it about 1/8" per keystroke using the arrows keys.
Also, when you created the oval and if it is inside the textbox, CUT and PASTE it outside for additional control/movement and don?t forget to make the FILL color transparent (No fill) to allow oval over words such as ONLY in the sentence we created in step 2.
You can download this example here:
http://eparisek.com/OvalTest.zip
Hope this helps.