Hi Gloria,
I think there is no clean way to embed Microsoft documents into a site
using EPF or EPF Wiki. It basically works as you describe by linking to
the documents and clicking the links will open the documents in a seperate
window. To allow updates you would need something like MS Sharepoint, this
is the only way I know of that will allow you to open a document from
link, makes changes and then save the changes.
In EPF Wiki changes to published content are immediately visible after the
user does a check in. The admin does not need to approve changes, the
admin can moderate changes and choose to rollback changes. More
information about the harvesting is in the guide
http://wiki.eclipse.org/EPF_Wiki_User_Guide#Harvesting
You third question is about enacting processes created with EPF I think.
The SPEM document has some interesting information about enactment, see
for example chapter 16 in http://www.omg.org/spec/SPEM/2.0/Beta2/PDF/.
This information mentions linking to BPMN enactment machines. Process
enactment is a personal interest as is open source development, in fact I
have developed some ideas about integrating EPF Wiki/EPF with open source
technology that would allow amongst other things the enactment of
processes created with EPF Composer. So I would be interested in
participating in such an effort in the open source domain.