Hi!
I've just downloaded the latest version (08-23-2007) of the Editor and created simple page with it, plus Save button. When a user types any text in the editor and clicks on Save right after that, the XHTML does not have typed text. But if a user types the text and either clicks to any editor's button or just moves the focus to any other control on the page and THEN clicks on Save the XHTML value contains valid text.
Please check this.
Alex