I have it installed and working, but not sure if there is a fix for pasting HTML code.
As discussed in this thread, if I paste "clean", AC strips out all the HTML tags. If I paste in editor, all the code is one huge line: http://www.screencast.com/t/N96nKIl9W
Indeed pasting HTML in there is a bit tricky, try to copy the html form your notepad so that when you copy the code you won't copy any style from the editor you copy it from.
If you use clean paste from tinymce it will strip out all your html tags so yes it is worthless, I'm not sure about the word-paste button thought but I guess there isn't any straight forward way for it...
I did find a workaround though. If the [syh] code and HTML are all within the same preformatted block, it works.
A strange note though.. you must type something in the preformatted box BEFORE pasting your HTML or else it will be pasted as multiple preformatted blocks- no idea why, but I was able to reproduce this several times.
I don't know if you're interested but I put together a Readme.txt file (attached) that you could include in the next package release.
Take a look and see if I missed anything or included outdated information.