Have you tried Open Office? Open the original .doc file and save it as .rtf. Open Office's MS Word importing isn't 100%, but it is close. In this case, you probably want less than 100% fidelity, since if OO correctly imports all Word's formating you may again end up with a 500 MB RTF file.
Alternatively, in Word try saving in an early Word (95?) format and then importing this to Word or OO and then converting to RTF.
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