Here are the steps to reproduce the issue :
Go to : http://cutesoft.net/example/JavaScript-API.aspx with IE6 or IE7
Place the cursor in the editor. Delete the content (Ctrl+A, Del)
Select InsertLink in the DropDown and press ExecCommand
Go to the source to see the inserted link : <p><a href="Http://CuteSoft.net">
</a></p>
Vincent