At our newspapers we paste our stories (posts) into WordPress from QuarkXpress 6.5. When the stories are pasted in the Visual area it makes one big paragraph with no line breaks. If we post it into the Text (code) area we can at least see a soft return... where we can add an additional return to make them paragraphs.
In our previous version of WP we were able to paste the code in the "Paste as Text" popup screen. This would give us the paragraphs. The new "Paste as Text" button doesn't have the same results.