I haven't tried tinyMCE, but it looks pretty full featured.  The ones
I've toyed with are:
-- the dojo one (http://dojotoolkit.org/docs/rich_text.html). Dojo has
your choice of a bsd-license or an academic free license.
-- kevin roth's (http://www.kevinroth.com/rte/demo.htm). It's public
domain - no license necessary.

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