Hi Peter,
I'm unable to replicate the errors you're getting with either Word 2003 or Word 2010. Try this variant:
Code:
Sub Demo()
Dim Shp As Shape, Rng As Range
Set Rng = Selection.Range
Selection.Copy
Selection.Collapse
Set Shp = ActiveDocument.Shapes.AddCallout(Type:=msoCalloutOne, _
Left:=100, Top:=40, Width:=150, Height:=75)
With Shp
.TextFrame.TextRange.PasteSpecial DataType:=wdPasteText
.Anchor.Cut
Selection.Paste
.WrapFormat.Type = wdWrapSquare
.RelativeVerticalPosition = wdRelativeVerticalPositionParagraph
.Top = 0
End With
Rng.Select
End Sub
Note: Since textboxes default to the 'Normal' Style, pasting as unformatted text should achieve the same result as pasting formatted text then applying the Style.