I have developed a method to copy and paste from Word to Moodle, including images.
The requirements are:
1. you have a webserver accessible in your netword as a windows share (ex. a Windows machine or a samba linux share)
2. you use a different domain for your images storage than your base moodle install (it still can be the same computer, use a subdomain ex media.mymoodle.org)
If your Moodle deployment is (as it usually happens) on a server at your university/school, the two statements above hold.