I've managed to link Word documents in two ways:

insert->object->create from file (with Link to file selected)
insert->file (with the Insert as link option)

If I set the linked version I can set show as text and everything is how I want it.

I noticed you can edit the text (highlighted in grey for links) and I thought "briliant! You can update the source with any changes you made in the document." I can only seem to update the links from the source though (right click Update link)

So my question is, is there an Update From Link function that takes the changes and updates the source document?

Thanks