I use Word for all primary editing and formatting and stylizations. Save as htm-filtered.
I then load into Dreamweaver, clean up the word html, strip out word-css at top, load in a valid css (that happens to match the word styles - copy out the word css at top, and use a css validator to clean up), convert to xhtml in Dreamweaver. The produces near-completely-valid/compliant xhtml, with only 1 or 2 things that need to be hand-corrected to make it fully valid.
Load into calibre. Convert until happy.
While extra-horsey-around-ier, it makes output the cleanest I can make without hand-editing line-by-line (Lazy, you know).
-bjc
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