Yes, Macs can run wordpad and MS word stuff. They just have to use the correct application to open the documents.
With combat in eRPGs: I usually try to avoid combat in them. That makes it easier because you don't have to make the decision. If there is combat, though, I find that hotline or ICQ chat is the best way to do things. If you use email for blow-by-blow combat, then a single minute of game time could turn out to be weeks of real time, and that is not very cool.
And good luck with the RPG thingy.