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Go to file > page setup and set the paper to landscape (sideways). Then make a table (2 columns, 1 row) and make the borders be clear. Set document margins probably to .5 inches and then drag the vertical borders of the table to set each box to be 4.5 inches wide (remember the 0.5 margin). You'll have an extra half inch on the side that will have to be trimmed after printing. Make sure you don't do past the 6.5" mark on the vertical when you type in your text.
You can also do something like this in powerpoint. I find it easier to manipulate spacing, etc. there and keep things constant.
1. Set your slide size to 8.5 x 11 - File > Page Setup, then enter width = 11, height = 8.5, click OK rather than fix when it gives you a warning
2. Make your slide layout blank - Format > Slide Layout, then select "blank"
3. Make a text box. Insert > Text box, then draw something with the cursor.
4. Select what you drew and then go to Format > Text box. You can then fix it up to your desired dimensions:
- select Size and enter your dimensions height = 7, width = 5
- select Position and enter where on the page you want the box to start, e.g., horizontal = .5, vertical = .5
5. Enter your text and everything... you can then copy the whole text box, paste it, and adjust its position, etc. to be beside the first one.
You can put images and other textboxes in the textbox if you want, but it you sometimes need to unselect in order to see how it will look.
If you have iwork, this is a standard template. Pages is great! (I hate word)
Thank you so much! I'm horrible at formatting in Word, but your advice made it take only a couple minutes to format my invitations!! 
This is exactly what I was looking for, it works so perfectly in power point THANKS!!!!
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Anyone know where to find a MS Word template for printing two 5x7 cards on a single 81/2x11 sheet that's compatible with Mac? I'm driving myself crazy trying to do this just with margins and text boxes and a template would be save my sanity, but I'm having no luck on google. Any suggestions?