When I test this on your demo website
http://cutesoft.net/asp/EditorOnPaste.asp?EditorOnPaste=ConfirmWord
copy the text from Word, paste it into the CuteEditor field using the "Confirm" Word settings, I am getting this:

<h2 style="margin: 10pt 0cm 0pt"><span lang="EN-US"><font color="#4f81bd" size="4" face="Cambria">Ask the questions you need to ask</font></span></h2>
<p style="margin: 0cm 0cm 0pt" class="NoSpacing"><span lang="EN-US"><o:p><font size="3" face="Calibri">&nbsp;</font></o:p></span></p>
<p style="margin: 0cm 0cm 0pt" class="NoSpacing"><span lang="EN-US"><font size="3" face="Calibri">Well consider the following key topics; business objective(s), anticipated impact of the project deliverables, expected quality standards, significant risks seen at this stage, key dates on the project horizon, key stakeholders (beyond yourself and the project sponsor), and any budgetary constraints that are likely. In addition you need to learn what style of communication and relationship this particular sponsor expects from you.</font></span></p>
<p style="margin: 0cm 0cm 0pt" class="NoSpacing"><span lang="EN-US"><o:p><font size="3" face="Calibri">&nbsp;</font></o:p></span></p>
<p style="margin: 0cm 0cm 0pt" class="NoSpacing"><span lang="EN-US"><font size="3" face="Calibri">First impressions really count so do your preparation well. If you conduct a good, professional, confident, first meeting with your project sponsor you will not only demonstrate your capability in a good light, but you will also provide a valuable service to the sponsor.</font></span></p>

So it looks like the paragraphs are correctly converted to <p>. However there is more formatting than I want and need.

When I do the same with "PasteText" I am getting this

Ask the questions you need to ask <br />
Well consider the following key topics; business objective(s), anticipated impact of the project deliverables, expected quality standards, significant risks seen at this stage, key dates on the project horizon, key stakeholders (beyond yourself and the project sponsor), and any budgetary constraints that are likely. In addition you need to learn what style of communication and relationship this particular sponsor expects from you.<br />
<br />
First impressions really count so do your preparation well. If you conduct a good, professional, confident, first meeting with your project sponsor you will not only demonstrate your capability in a good light, but you will also provide a valuable service to the sponsor.

Here paragraphs are converted to <br>.

In your description of the properties you say the following

PasteText:  When you paste text into the editor, all HTML formatting is stripped except for paragraph marks. This option is ideal for content management systems where you want to import text from other word processors and strip off any strange formatting commands they included. 

... exept for paragraph marks ... I would expect they are converted to <p> and not to <br>

So I don't think the original text has <br>. When I look at the text in a HexEditor I see "OD OA" which looks like carriage return ...

Any help? Anything I can do to make my life easier?