It is a noble goal to produce nice HTML from the stuff that
word spits out. Noble, but difficult.
There is a tool for that. I'm browsing now to find that tool... . here it is:
'mswordview'. Let me download and try.... oh, new projectpage here.
Looks nice, there should be HTML 4.0, LaTeX, plain text, PS, PDF
output.... compiling/testing (oh you only need wv, skip the libwv)
On a glance the output is decent HTML. The authors claims W3C HTML 4.0 compliance. Methinks that 'wordview' is the way to go.