We think this is a great solution but you may need to use an updated version of this plugin. Try Docxpresso http://www.docxpresso.com/plugins/wp-docxpresso - we have created a new version with some new features.
Works great to import word .docx files, event with images it displays correctly.
The only thing is that it uploads the images on its own folder, instead of the default /upload/ folder.
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