I'm not sure what this line does:

myChosenWordEasy[MAXWORDLENGTHEASY];
I copied and pasted the code that we where given and the start of the project and then modified it.

That line used to declare myChosenWordEasy as a variable, and since then I have moved it to the top of the code. It would seem that I had forgot to delete it.

Hard to read unindented code (I'm assuming it's because of the way the post gets formatted by the board)
Yes it is the board.

I really don't understand the second half of your post, so I can't make any comments on that.
Ignore that bit.

2. You are right, you cannot compare two char arrays to figure out if two strings are identical. Use strcmp instead (man strcmp).
That is very useful, thanks.