Happy New Year Apollo & DemonGoddess061! Just wanted to wish you best of luck with the code rewrite. I'm working on a "refactoring" of PaperDemon so we'll be getting improved user interface, speed improvements, and new features in the coming year.
Not sure if it interests you, but if you want to be able to process MS Word file uploads and convert them to HTML, you can use this handy script. It's free. However, i don't think it works with newest versions of MS Word (docx files). But your users can always save their documents in an older format.
http://wvware.sourceforge.net/
If you need detailed PHP code on how to integrate with this, let me know. I'd be happy to share. You can email me at bogusred@paperdemon.com.