You can use DesktopFolder predefined folder location in Shortcuts view of InstallShield Editor to install shortcuts to DesktopFolder. In addition you will need to delete the ALLUSERS property in Property Manager so that the installation will default to a per-user installation in which DesktopFolder will map to the per-user desktop location.
The shortcut target location will need to use [PersonalFolder]Files\word1.doc to reference the per-user Documents location.
Then I suppose you will need to publish this MSI package to each user using a tool like SMS/SCCM. Or else each user can run the install separately.
There isn't any built-in way to run the install once and have the customized shortcut appear for each user.
ALLUSERS property:
http://msdn.microsoft.com/en-us/library/aa367559(VS.85).aspx-Ajay