Ian,
The problem is that a copy from word includes a whole load of control characters. These are not interpreted correctly by browsers that expect HTML tags instead. As it's impossible for an editor to know if the text is from word or not the user has to show what they are pasting. Hence there are three past icons on these edit boxes:
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Straightforward paste, which allows for extended 'unicode' characters like euro symbols etc. as well as pasting across different fonts and the like.
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Plain text paste (which reduces everything to just the basic 'ascii' character set – essentially what you have on the keyboard).
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Word paste which intelligently removes the word format codes without getting rid of special characters.
So, there are choices facing the designer of a facility like this – they could include any or all of these three options. The only way to be 100% safe is the plain text mode, but the people would be complaining when any special characters disappear.
Similar issues apply to hyperlinks, which is why a special button is provided that should make links unbreakable and allow them to wrap properly. If this is not used, the form 'thinks' the link is one very long word, and doesn't wrap it.
These issues face all webform designers, and ultimately are down to the limitations of HTML.
In due course there will be better solutions but most of the websites that appear to be problem free do two 'cheats':
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Plain text paste only (but this prevents the use of special characters & fonts)
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Fixed width display, which forces links to wrap, but doesn't respond to things like changes in character size.
We shoudl appreciate that they have invested in proper editor, apparently the same one we use for our CMS at work, and though it takes a little learning, anyone who can operate a lathe ought to be able to grasp the basics in a few minutes.
Joey