Yes it works fine, no formatting issues. Just one step more in the work flow. Copy/paste from Word document into a plain text editor and then copy/paste from text editor to hype, but never mind. Not the end of the world 
It still surprises me that formatted text that is pasted from an external source into hype cannot be reformatted differently directly in hype (text/font inspector) without this extra step to be done or doing some work in the code. I believe copy/pasting text from an existing external document is standard procedure for many designers/web developers and most of the time it is already a formatted text. This seems to be rather a work-around than a standard action in an application.
In order to get rid of this junks of "w;LsdException" codes from my exported document, I will need to delete all my text contents in the hype project and copy paste it back once again from a plain text document. Thanks god I don't have too much text on my website yet.