I can reproduce the issues on the demo.

I am creating an email in Outlook 2010 - using Word as the editor - and I typed up a simple message with a bit of formatting. I copied it from Outlook and pasted it into the box on the demo page. An alert box appeared 'do you want this text from Word cleaned?' - I clicked okay and the text was pasted.  But the bullets are lined up against the left of the text box and the space between the word 'formatting' and the word 'and' has been removed.

Here is what I pasted:

Dear sir or madam

Invitation to join the party

We are holding a party soon and we would like you to attend.

Let’s put in some bullets here:

· Bullet 1

· Bullet 2

· Bullet 3

We’ll do a bit of formattingand paste into a Cute Textbox.

Edit: IE 9 browser