Wow, this thread is confusing. I think I understand what's going on, though. So, I'm going to review what we've established thus far, and if I get it incorrect at any point, Alan, please do let us know.
1) You put the text from your Word file into InDesign, either by copying & pasting or via File -> Place.
2) The place(s) in the text that are supposed to be in Chinese are not in Chinese at this point; they're either a row of question marks, or a row of pink boxes. (It's possible that they're just the wrong Chinese characters, in which case see my advice about saving as Big5 or GB2312 below.)
3) You then apply either SimSun or Arial Unicode MS to these characters, but what you get after applying these fonts does not match what you have in your Word file. There are many possibilities here: you get Chinese characters that do not match the ones in your Word file, or you get question marks, or you get the right Chinese characters, but they're still marked pink, or something.
Did I get it right?
Here's a set of basic "how-to-get-Chinese-into-ID" instructions. If they don't work for you, please post with some more specific details (exactly what do you see when you apply SimSun to the putatively Chinese characters?), and some screenshots if possible.
First off, does your computer support Chinese text processing? Assuming you're running WinXP, go to Start -> Settings -> Control Panel -> Regional and Language Options -> Languages tab, and check the "Install files for East Asian languages" box.
Next: did you copy the text out of Word and paste it into ID? Don't. Use File -> Place.
That didn't work? Make a Word file with just the Chinese characters, and try placing that. Then apply SimSun to the Chinese characters.
Still no dice? Open up your Chinese-only Word file, do a File -> Save As, then choose "Raw Text" from the Type dropdown, then choose "Other Encodings" and choose "Unicode" or "Unicode (UTF-8 )." (I'm assuming you have Office XP or 2003.) Then, go back to InDesign, and use File -> Place, but check the "Import Options" box in the lower left hand corner, and choose the appropriate encoding from the dropdown (Unicode or UTF-8 ). Then apply SimSun to the Chinese characters.
Lastly, if even THAT doesn't work, try saving raw text files out of Word in Chinese ("Traditional, Big5" or "Simplified, GB2312"), and then placing those raw text files in ID and applying SimSun (or MingLiu, assuming that you've installed it in the first step).
If none of this works, you have big problems.