Zotero [zoh-TAIR-oh] is a free, easy-to-use tool to help you collect, organize, cite, and share your research sources. It lives right where you do your work - in the web browser itself.
also have a look at the blog http://librariansarego.blogspot.com/
for more information on how to use this app.
Download as a firefox addon and then install the Word or OpenOffice addon too so that the two integrate. Be sure to see the video which accompanies the word app download to see how it all integrates.