I can't get the comments to appear in a balloon. They do appear in the right margin, but not in a balloon. That makes it difficult to distinguish them from the other things in the margin (deletions and formatting). Under Track Changes Options I tried two different things for Balloons in All Markup View Show: Comments and Formatting, and Revisions. Neither of those options would make the comments get into an actual balloon.

To distinguish the comments from other items in the margin, I tried to put the comments in red. That doesn't work either.

I also tried the document in both compatibility mode and Word 2013 mode. I saved it in both docx and doc. None of those actions had any impact on the problem.

So here's the setup I need:

Deletions to appear in the right margin
Additions to appear in red in the text (This is working.)
Comments to appear in the right margin in a colored balloon.

I made one system change: I installed Classic Shell over Windows 8.1. I assume that would not affect Word.