I have the same issue! Are you aware you must use 97-2003 document format to see text boundaries? Also if you use this version of Word, you see that version of Word Art - which I like much better than the new one in Office 2007-2010-2013!

There must be a method to see the cursor blinking! I hope someone comes up with a solution!

I cannot live without text boundaries - labels, envelopes and just regular text, text boundaries are a must!