Basically, you can copy and paste your information from Word to SoftChalk. Your formatting comes over as well as your images.
When you copy images from Word and save your lesson in SoftChalk, the images get copied into your lesson folder. For details on how images are handled in SoftChalk, see the FAQ When I insert an image into a lesson, what happens to the image file?
NOTE: You can also just link to a Word file rather than convert it. For details, see the FAQ How do I link to a file within my lesson?