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Having worked in publishing some years ago, I'd like to offer a different perspective.
There is a matter of professionalism and reputation here. If your own 'DTP person' (?) can't produce something as professional looking as the author, you should let the author do it. This will cost you (or it should, in the sense that he should be paid for that separately from his commission/royalties on authoring, just as you would pay a contractor). However, you might want to chalk it up to experience. I've never heard of a professional book publisher outputting in MS Word before. It's not built for long, complex projects like textbooks.
Phil Stokes BA MA TESOLcert
Chulalongkorn University Language Institute
Phaya Thai Road
Tel: (662) 218-6089
philstokes03 -at- googlemail -dot- com
2551phil -at- gmail -dot- com
philip -dot- s -at- chula -dot- ac -dot- th
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