Depends. Who are your authors? What sort of system are they using to write?
In a very simple system you might cut and paste from Word, or write directly into a Web form.
If you write directly into a Web form (like the ones used in this message forum) you can improve the UI with typestyle buttons using Javascript.
If you paste from Word into a Web form, you lose basic markup.
Microsoft has an IE-specific HTML authoring control that you can integrate into your pages as if it were a Web form (if you're comfortable writing some Javascript and can find the documentation on MSDN). My company sells a low-end site management system that relies on it. It allows you to cut/paste text from Word or complete tables from Excel. Formatting is converted to HTML.
My company's CMS systems integrate with a variety of upstream tools -- Quark pages, Baseview, DTI editorial systems, and others. Each one is a special engineering challenge. But you don't go down that road unless you're integrating with some legacy workflow system.