I have seen this before. There is an option selected somewhere about the
display of the equation in the text. Unfortunately .aI don't remember
how to set the option.
I strongly recommend you consider buying mathtype. This is a very
powerful upgrade of the Eq,. Ed., made by the same people who apparently
worked on the Eq. Ed. for WORD. It is WYSIWIG, easy to use (works pretty
much like the Eq. Ed.) and integrates saemlessly into WORD.