I used MS Office 2003 for years; finally last year I upgraded via university discounts to Office 2010. I'm using the 2010 version, but if the discount wasn't so large I'd still be using the 03 version which did everything I needed to create ebooks (and much more). I had updated 2003 as 'exalted wombat' suggested.
I've found 2010 Word to be pretty complex - I didn't like the default settings on 2010 and spent some time resetting all defaults to mimic those in my 2003 version. Many resets are not very intuitive, and I still don't know what many settings actually do.
I never try to use the html productions of Word, and manually markup all docx documents in Word. Once the xhtml is added, Sigil accepts the copy/paste docx material.
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