PasteFromWord inserts into current <p> (FireFox3)
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When using PasteFromWord dialog, the content is inserted into the current paragraph, i.e. <p> <h1>Heading from Word</h1> <p>Normal text from Word.</p> <p> </p> </p>
This was using FireFox 3.0.1 on Windows XP (5.1 SP2). It worked fine in IE7 (i.e. the content goes after the current paragraph)
Note if you click [Source] four times the HTML is correctly formatted.