Using Delphi 7, if I have some text like that shown in the lefthand window below, how could I extract all the words and punctuation in a paragraph and copy them to another window like that on the right, followed by a #?

Using Delphi 7, if I have some text like that shown in the lefthand window below, how could I extract all the words and punctuation in a paragraph and copy them to another window like that on the right, followed by a #?

If I'm understanding you correctly, you need what's called a "tokeniser" or "lexer".
D7 comes with one built-in, in the Classes unit, misleadingly called TParser (misleadingly because parsing normally means the "grammatical analysis" step which may follow the tokenisation of the text, as happens f.i. in the operation of a compiler).
Anyway, iirc, Delphi's TParser was intended to do things like process the text of DFM files, so will not necessarily split the text up exactly as you want, but it's a start. For example, when it tokenises ":=", it will return the ":" and "=" as two separate tokens, but, of course you are free to join them up again when NextToken/TokenString return these in succession. Btw, there are several alternative ways of implementing a tokeniser using classes in the freeware Jedi JCL and JVCL libraries, f.i.
If the text window on the left of your q is in your own app, code like the following may do what you want:
If the text window is in another app, you would need a method of retrieving the text from it, too, of course.