1) As far as I can tell, Text Reformat doesn't do anything. But the help file suggests that it redistributes text in one set of cells to another. I was unable to get it to do even that.
2) The closest built-in function to the one desired is the QuickColumns function, but it does not appear to allow the user to break a text into 2-character columns.
3) The functions that Tim identifies should not yield a "Not enough arguments" error message, as the help file will confirm. Searching the WordPerfect Universe site, that error message most commonly occurs when the function is not perfectly formed, as where there is an extra space somewhere, or a missing parenthesis.
4) I wrote a little macro that works in my testing. Place the cursor on the topmost text entry to be split into the four columns to the right, and then run (alt+f2) this macro.
The macro moves down the column of text entries, looping until it reaches a blank cell. At each stage, it uses the @MID function to place the desired two characters into the four columns to the right of that cell.
I just saw this thread and have a few comments.