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Wordpad is provided by MS as a "get by" application... (and I hear in Vista it can no longer open Word documents). Do you have images in your file? In Word format, it stores them as compressed binaries. In RTF, it bloats like mad into a textual format. To see what I mean, take a small image and stick it in Wordpad, then save as RTF... open the RTF in Notepad and you'll see what I mean.
Since the reader can't display images in RTF files (yet), you could always remove them.
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