Hi guys,
We've just run into this problem as well. It happens intermittently and never seems to happen locally - only on remote servers.
It appears the setTimeout() function rendered just near the end of the html output by the CE control needs to have a longer time delay:
<script language=jscript>setTimeout(CE_Editor1_ID_InitFunc,10);function CE_Editor1_ID_InitFunc(){ CE_Editor1_ID.addBehavior('/Products/Includes/CuteSoft_Client/CuteEditor/CuteEditor.htc.aspx?settinghash=253e3242') }</script>
<!-- CuteEditor Editor1 End -->
Based on the comments in the Google thread, I'd probably recommend stepping it up to at least 500, but maybe you could expose it as a property somehow to give developers control over it - no point delaying for 500-1000ms if the control is being used exclusively in a LAN Intranet setting, but if you have dialup users on the other side of the world, it might make sense to bump it up even as far as 2000 to cater for latency.
cheers,
Dan