I was wanting to know how to do the effect where one word drops in and smashes another word. Ive seen it in a couple of demonstrations but dont know how. thanks
I don't recall that text animation available in the public version of Keynote '09. I know what you mean, but I believe it's only available to Apple for their presentations.
It's a Build-In Action, so in Keynote's Inspector, select the third box, and choose the Build In tab. Once you select the text box, you can add effects to it.
UPDATE: Had to re-read your question, and sorry to say, I don't think it can be done with a single word. Hope my above tip helps anyway!
It'll be in iWork '11
Steve always uses versions of KeyNote that haven't been released to the public. We always get the features that he uses in the next iWork release.