I found the fix for the html editor not showing up. In your base moodle directory, go into config.php, after the ending php tag show as a:
You will notice that there are 2 blank lines at the end of the document, delete those and save/upload and the problem is fixed. If it does not fix, you may want to try clearing your browsers cache. This worked for version 1.6. HTML editor shows up in Firefox and IE.
If you are having this problem and and you attempt this fix and it works, please post acknowledgement of it working for you here. I am hoping that it just doesn't fix my situation but others as well.