Also, auto-wrapping tags around a selection would be nice, for instance if I paste an image url, then highlight the url and hit the Insert Image button it would put the [IMG ][ /IMG]tags around the url, similarly to how phpBB did it. Or highlighting a sentence and hitting Bold. That sort of thing. That isn't as important as the in-line insert though. But it would be really handy!
One other thing, I find Prompt Mode to be really annoying! And the site doesn't remember my settings when I change it to Basic mode. If that setting could be saved or cookied or something that would be super awesome. And if not then I propose a change to make Basic Mode the default setting