Hi Tawanna,
If you wish to grade your students using an assessment form, I guess Workshop is the best tool, but it is a bit complex to set up.
If your students can write the sections in separate windows, the Form assignment type might do the trick; it allows you to grade the sections separately (I'm not sure this one works in 1.6.x).
For inline corrections and comments in the book reports I would use the online text assignment type (and add to the feedback or to the assignment description my assessment criteria).
Rgrds,
Paul.