What uses more space
 

Which type consumes less space:

An imported Word Document ( not linked )

vs.

An Internal UR Text Document ( using a Form )

Keep in mind the information is identical in each document.

I have 1600 Word documents and want to know if I should spend the time to convert each Word document ( one at a time, ouch! ) to the UR Internal format.

If the space savings is significant than I will consider performing the conversion.

Is there a utility to convert word to urd format by any chance that keeps the formatting intact?

I'm not sure. It probably depends on the content of the file. You can do a test:
1) Create a new database and import a few Word documents.
2) Create another new database and import the same Word documents saved as RTF.
3) Compare the file sizes.

There are convertors available to automate conversion from Word to RTF.
http://www.google.com/search?q=convert+word+rtf