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They usually let you know how they want it, but most of the time it's true that they won't open files so I usually paste it and attach a PDF copy also.
The offices i've worked for and companies i've applied to almost always ask to have the resume and cover letter attached as a pdf file. On occasion they'll allow it as a word document.
I've always sent mine out as a pdf unless they ask for a word document. I've never copied my resume in an e-mail, but I have copied it when the application is done through an online form.