Try the following revised code. I've both simplified it and improved its efficiency.
Code:
Sub ConvertHyperlinks()
Dim StrAddr As String, StrDisp As String
' Turn Off Screen Updating
Application.ScreenUpdating = False
With ActiveDocument.Range
With .Find
.Text = "\<[Aa] href=([!\>]@)\>([!\<]@)\</a\>"
.ClearFormatting
.Replacement.ClearFormatting
.Replacement.Text = ""
.Forward = True
.MatchWildcards = True
.Wrap = wdFindStop
.Execute
End With
Do While .Find.Found = True
StrAddr = Replace(Split(Split(.Text, ">")(0), "=")(1), Chr(34), "")
StrDisp = Split(Split(.Text, ">")(1), "<")(0)
.Hyperlinks.Add Anchor:=.Duplicate, _
Address:=StrAddr, TextToDisplay:=StrDisp
.Collapse wdCollapseEnd
.Find.Execute
Loop
End With
' Restore Screen Updating
Application.ScreenUpdating = True
End Sub