Thank you for the detailed step-by-step instructions, which helped us to reproduce the problem.
The problem is due to the ToolStrip element which contains the Paste functions. When you click on its little arrow that expands the dropdown popup, the selection is lost and for that reason the pasted content is always pasted at the begging of the content.
As a temporary solution you can display the desired paste options as standalone buttons on the toolbar and remove the toolstrip element which is causing the issue. All you need to do is to replace the following tag in the ToolsFile.xml file
whit these ones:
<tool Name="PasteFromWord" />
<tool Name="PastePlainText" />
<tool Name="PasteAsHtml" />
<tool Name="pasteFromWordNoFontsNoSizes" />
I logged the reported bug in our bug tracking system and we will try to fix it in one of the upcoming hotfixes of RadEditor. As a small note of gratitude for your feedback I updated your Telerik points.
the Telerik team
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