I have installed YUI Editor.
Here is a screenshot.
I am still testing it. it does show fine in the Lesson area. But its not saving as of now.
Looks nice. I had a thought recently about something similar that eventually, the editor would end up using YUI. I was wondering if it would be possible to actually implement an 'autosave' feature. Thinking about those poor students who try to make a post and end up losing their 4 pages of text because they didn't copy it first. If this sounds like something worth pursuing, let me know, and we'll talk about the details.
Autosave is a great idea, and it can be implemented via the YUI even with the current text editor--an example here:
http://ciscobeta.mroomsdev.com/course/view.php?id=18
(login as guest if you get the login screen).
http://ciscobeta.mroomsdev.com/course/view.php?id=18
(login as guest if you get the login screen).