[Jason]

I think I only started to experience this problem after installing SP1 for
Word 2007.

And after I have hit paste, Word never comes back from the "contacting
server .." status message. I have to kill it.

Pasting as unformatted text is no good, because it omits images.

Does Microsoft have bugzilla or jira or *anything* where bugs such as this
can be reported and we can see what they are doing about them?

In the meantime, I am pasting into OpenOffice. Grrrr....

... Jason