The original howto site isn't completely idiotic. What MobiPocket Creator is designed to do is take HTML and produce a MOBI (which is the same as an AZW). It also has an import option that takes a MS Word DOC and converts it to HTML (it actually uses MS Word to do this). So the process is DOC -> HTML -> MOBI. However, this is all done within MobiPocket Creator. MobiPocket has documentation for Creator
here.
If you don't like this approach here are two good alternatives. Use Desktop MobiPocket Reader (DMR) instead - it will import the DOC and produce a MOBI (which will be in the directory used by DMR all the MOBIs). Or, use MS Word to export the DOC to some non-propriety format (RTF, HTML, PDF) and then use Calibre (has its own forum here) to convert to MOBI. The best results are probably from HTML, but if you have no graphics RTF might be easiest.