I want to create a word doc that can be password protected. Scouring the internets has got me a half dozen apps that don't work worth a shit.

Anyone got a simple create doc, add password app they found? Preferably free.

Not a single app solution, but you can use Dropbox to store the file and Dropbox lets you set a password to access the files. 5GB for free.
This would also allow you to access the files from any internet connected computer.
There are several word processing apps that integrate with it. Check out Documents Free and Cloud On.
If you have a MS Word document that already has a pw on it, Cloud On will support that.

http://support.cloudon.com/article.php?id=94219

I found the two steppers but for the life of me couldn't figure out how to import from my desktop. Do I create a word Doc and them somehow add it to my iTunes or cloud? I've never transferred data between my iPad and anything.

Personally, this is the worst thing about an iPad. There is no file system to store things. It is all done with apps.
If you use Dropbox (that is what I use), you can go to the dropbox website and upload documents there. They also have a desktop program
that will allow you to sync a folder on your pc with Dropbox.

Download the iPad Dropbox app, open it, and login. You will see the file(s) you uploaded. When you tap on a file, it will most likely open in dropbox (it will be able to open most file types), but you won't be able to edit it.
Tap the button with the arrow at the top right of the window (same as the button you would use to forward an email), and one of the options will be to "Open In...".
This is where you will select your editing program like Cloud on, Documents Free, Pages, Docs to Go, etc...

Once you are done editing, the program will allow you to save changes back to Dropbox. It works pretty good for me because I can edit the latest version of a document from ipad, iphone, or any computer.
I also use a shared folder with my business partner. We can each have access to the latest version of a document and edit it.

There are alternatives like Google drive that should work the same, I just have more experience with DB.

Pages (Apples app) will allow you to use iCloud.

Some apps will allow you to add files using iTunes sync. Plug your iPad in and select it in iTunes. Then select the Apps tab. Scroll down and you will see a list of apps on the left that allow iTunes Sync.
Select the app from the list and then the click the add button on the bottom right. This will allow you to add a file from your PC to the selected app on your iPad.

I tried several free office suite programs and ended up using paid apps. They all seemed to have some limitation (editing, creating a new doc, etc...) that wouldn't work for me. I have used Documents to Go and Pages. They both
work well for me. I played with Cloud-On and it looks pretty good, I just haven't tested it thoroughly.

Let me know if this doesn't make any sense. It is late but I wanted to give you something to go on.