To try out this useful tool:
Use the heading styles in the Styles box under the Home tab to identify sections as you write. Then place your cursor at the point in the document where you want to place the table of contents/outline. Finally, select Table of Contents from the References tab in Word 2007.
Microsoft has a couple of useful recorded tutorials that give some greater detail on the use and customization of tables of contents at http://office.microsoft.com/training/training.aspx?AssetID=RC102616991033&CTT=6&Origin=RP102617091033.