Hi mw chen,
The Lite version of RadEditor for MOSS and if you are using it you are not supposed to receive the described message. I think that you are using the full version of Telerik RadEditor for ASP.NET.
Here is how you can verify this. I attached a feature comparison file where you can see which tools are disabled for the Lite version of the control. Enable one of these tools and check if it will work. If this is the case you are using the full version of the control.
You can download the free version of RadEditor for MOSS from the following location http://www.telerik.com/community/free-products.aspx
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