Just FYI
I should add. my current settings.
<CE:EDITOR id="Editor1" runat="server" Height="150px" width="600px"
text='<%# bind("comment") %>'
EnableContextMenu="True"
MaxTextLength = "8000"
ContextMenuMode = "Simple"
Focus="False"
EditorWysiwygModeCss="../CSS/CuteEditorTextArea.css"
EditorOnPaste="PasteWord"
ShowHtmlMode="true"
ShowEditMode="true"
ShowCodeViewToolBar="false"
ShowPreviewMode="false"
ShowTagSelector="false"
ShowDecreaseButton="false"
ShowGroupMenuImage="false"
ShowBottomBar="true"
ShowWordCount="true"
TemplateItemList="[Bold,Italic,Paste,InsertOrderedList,InsertUnOrderedList,Undo,Redo,ToFullPage,FromFullPage,NetSpell]"
ResizeStep="150"
BreakElement="P"
UseHttpHandlerCacheImages ="true"
EnableViewState ="false"
UsePhysicalFormattingTags="true"
DisableAutoFormatting="true">
<FrameStyle BackColor="White"
BorderStyle="Solid"
Width="100%"
Height="100%"
CssClass="CuteEditorFrame"
BorderWidth="1px"
BorderColor="#DDDDDD">
</FrameStyle>
</CE:EDITOR>
I have discovered that the number 1. issue is due to the EditorOnPaste="PasteWord" if I set it to "Default" it's fine,
MS Word is the cause of all my ills...