When you copy text from Internet Explorer to a Microsoft Office Communicator 2007 R2 conversation window, the ";nbsp" character is converted to "Â" character.
This problem occurs if the HTML content that is copied has more than 20 layers of embedded elements. In this situation, Office Communicator 2007 R2 exclude the external layers of format information and only paste content. Additionally, Office Communicator 2007 R2 cannot correctly convert the text to Unicode encoding.
To resolve this issue, apply the following update package:
978564 Description of the cumulative update package for Communicator 2007 R2: April 2010
Microsoft has confirmed that this is a problem in the Microsoft products that are listed in the "Applies to" section.