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MarkdownPad is a free Markdown editor for Windows that that can convert Text to HTML or XHTML for you easily. Dwnload the free version here.
Export from word as HTML, open in Dreamweaver, and clean up word HTML in there.<BR><BR>I took a 28kb Word document, turned it into a 16kb HTML file, then DWMX trimmed this down to 12kb. Not that bad.
This OPML to HTML via Javascript tool also parses OPML you copy and paste into it and creates clickable links on a web page. Sadly, this page is not save-able, but it does support OPML folders.