If you use the Rectangle Text tool from the Draw toolbar to insert a text element then the text element created will support text wrapping.
However, if you use Insert | Text to insert a text element then the text element created will NOT support text wrapping.
Neither type of inserted text element has a property to toggle text wrapping on or off.
I've created quite a few text elements using the Insert | Text method because that is the method closer at hand when authoring maps and inserting all the other map surround elements. However, I've always been disappointed that these test elements did not support text wrapping. Now that I've become aware that the Rectangle Text tool supports this, I have the onerous task of creating new text elements and copying text into them. It would be much easier to just hit a checkbox and have text wrapping turned on.
Currently in ArcMap 10 when you need to add dynamic text to a legend, such as the document path, there is no tool or ability to truncate the size to fit an established width. Our users need the ability to input the document path name into a template and have it fit. Some of the path names could be 40-60 characters. Without going through the hoops of creating a text box or object, opening up Document properties, copying the document path name, pasting it into the text box and then playing with the spacing until it reaches the perfect width, there should be a way to utilize dynamic text, for anything, but have it be a specified width, font, etc. Also, utilizing another persons idea of having it be a button would allow for some scripting or programming to occur outside the schema. You could apply python scripting to the button to pull the filePath and update automatically on your map. It should also be able to work for Data Driven Pages.
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