To support RichText in your work items, you need to edit the work position definition with the work item editor. wihch can be found in the Power Tools utility. You must add a new custom text field and use this field for your descriptions. (The disadvantage is that the Excel plug-in does not support editing richtext fields. They are read-only in Excel)
In order to print work items, I had to improvise the solution and worked very well for me. I used the MS Word Merge feature and designed a Word document. After that, I prepared an SQL query that takes the required field values from the TFS Warehouse. Rest is done using MS Word. Mail Merge prepares one document for each work item record. These are separate documents, but this is a trick, I suppose.
To create a hierarchy, I think you need to go a little deeper. Since TFS maintains a parent / child relationship, but does not follow any specific sort order, I believe another custom field is required. You can use this field to assign hierarchy markers manually (1.1, 1.2, etc.), or you can develop a small custom command line utility to move the tree of work items and auto-matching values for the specified custom field.
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