Pocket Office on emulator

Word Mobile and Excel Mobile are not part of Smartphone, but are included in Pocket PC. (Both in emulator images and on actual devices.)

With the emphasis on maintaining roundtrip fidelity in Word documents, the decision was made to move to a different underlying technology that does not support inking in Word Mobile in this release.
While it is always painful to lose a feature such as this, our research did show that it was not widely used and that there was an overwhelming preference for increasing fidelity.

The Notes application in Windows Mobile 5.0 Pocket PC does still support inking and other 3rd party applications, such as PhatPad from Phatware, also provide inking and drawing capability.

You are correct that for Smartphone there are no Microsoft Pocket Office (actually Office Mobile for 5.0) apps, therefore there are none for the Smartphone emulator. For PPC there are, as there have been for years, Office Mobile apps (in the image).

There is no process for installing these apps on the emulator.

Notes does not open RTF files, but the control it is built on, the Richink control, can read RTF. You have at least two fairly obvious choices here:
1) Convert the RTF to the Notes file format and then feed the file to Notes. This would involve calling the richink control to stream in the RTF (SF_RTF) and then have the richink control stream out the native notes file format (SF_PWI). Notes could then open the file and I'm fairly confident the inking would be there. I could give you some code snippets if you want to go this way - it's not very hard to do but I don't have a machine set up to test it myself right now.
2) Consider creating a simple edit app on richink that just reads the RTF and doesn't bother needing to convert things. To do this please look for 'inky' in msdn (http://msdn.microsoft.com/library/default.asp?url=/library/en-us/mobilesdk5/html/mob5samInky.asp), or you can go look in C:\Program Files\Windows CE Tools\wce500\Windows Mobile 5.0 Pocket PC SDK\Samples\CPP\Win32\Inky on your machine (if you have installed to the default dirs) and look at inky.cpp - find the first occurence of EM_STREAMIN in the file (should be in the ID_TOOLS_OPEN case). I'm pretty sure if you change the wparam from SF_PWI to SF_RTF (or SF_UTEXT depending on your situation - see richink.h in the headers for these #defines)then the 'inky' app should basically give you the reader you want.

I haven't looked at inky for a long, long time, so it may not have near the features you want (if you're going to allow editinga nd saving there are plenty of error dialogs I bet are missing), but this should get you to an edit control that can read RTF.