Atto is a relatively new development, designed to overcome some of the shortcomings of both TextArea and TinyMCE, but in some ways it is so far behind TinyMCE still that it is proving somewhat less than useful. You should be able to change the default editor to TinyMCE in the Site Admin > Plugins > Text Editors > Manage Editors and swap the Atto for the the TinyMCE. That should solve your immediate problems.
Ryan is quite right though, while Atto shows some real promise, there does not appear to have been a lot of thought gone into improving the core Atto code, neither has there been a discernible amount of effort to do so. This seems to be coming back to innovation v polishing again.