Hello Lindi,
with D2H2008 you can continue to work with Word, no matter what target you want to create. Word 2000, 2002, 2003 and 2007 are supported by the current D2H version. Of course, if you want to edit HTML, it's best to have MS FrontPage or Adobe DreamWeaver, because for these you have a D2H toolbar in the editor. This might be helpful when using D2H functions in the sources.
The target HTML 4.0 has been replaced by NetHelp since D2H2005. I recommend to generate NetHelp for web based application: it is browser and platform independent, uses the same contextIDs as WinHelp and HTML Help, and is the most customizable target format.
Regards,
Sabine Kamprowski