Our company is about to migrate to Office 2003 from 2000. Does the "Open and Repair" feature in Word 2003 actually remove corruption from the document or should the text still be "pasted as unformatted" in a new document?
No, you don't need to paste the text as unformatted. This feature will actually repair the entire document. All you need to do is to start Word and to click Open from the File menu. Select the document using the pop-up dialog box, click the arrow next to Open button and then select Open and Repair. The software will try to repair the document by itself. Check the official support page for further details.