First: Yes, this is a really neat tool.
Question: Do you know if the ability to paste with formatting is out of the question? e.g., when copying from Word and pasting into an FCKEditor or TinyMCE field, you get at least some of the styles (bold, italics, paragraphs). I haven't seen that on anything but those two so far. (This is far superior in terms of load time (a big, bit issue for page usability), and I like what you've done with the configuration screens.)
Also, FYI, the regular "Edit Source" button seems to work fine -- not sure why the link to view HTML exists. Maybe it's one of those moving-target things?