I agree with SyntaxC4.
I found all four items listed in your post to be true and one more.
I'm testing in IE8 and IE7 (compatibility mode). When CuteEditor is in a modal, the editor textbox is larger that it is supposed to be.
If I click the HTML view button it corrects the size. I can then click the Normal view and size remains correct. After I do this once per page load the textbox remains the same. However, if a reload the page I have to click on the HTML view to correct it again.
I can send screen shots if you need them.
When can this be fixed or is there a work-around?
Jerold