Is there a good analysis book that talks about the 1st world champion Wilhelm Steinitz or Louis Paulson (this guy espically always liked Paulsons style since it matche's mine.

There are a lot of books that discuss Steinitz's theory: Lasker's Manual, Euwe's The Development of Chess Style, and Kotov's Play Like a Grandmaster.  Charles Devide and David Hooper put together a book of Selected Games for Dover, and Kurt Landsburger wrote William Steinitz: A Biography of the Bohemian Caeser.

I don't know of any books about Paulsen offhand, but Hooper and Whyld have a short blurb on his impact in the Oxford Companion.

Is there any books that talk about Willhelm games with annotation a book only about him.

The Devide and Hooper book has light annotations of his games in descriptive notation.  Kasparov annotated some Steinitz games in My Great Predecessors volume 1.  Sid Pickard also put together some of Steinitz's own annotations in a digital collection called The Collected Works of William Steinitz.

So how would you rate The Collected Words of William Steinit as being helpful.