I looked deeper into the htmlarea.js file from xinha and I noticed that it supports cleaning word html.
In fact, there is a button with the icon of a word document with a red circle/slash that users can press to clean up the content in the textarea of any word cruft.
The javascript function (HTMLArea.prototype._wordClean ) that does this can be found in htmlarea.js and is called whenever that button with the word icon is clicked.
Also, I've found that you can automatically execute this function as soon as content is pasted by setting this.htmlareaPaste and this.killWordOnPaste to true in the htmlarea.js file.
However, htmlareaPaste works only in IE so for users that use mozilla based browsers, they will still need to click the clean word icon after pasting.