Unfortunately I was not able to reproduce the issue. I used the latest version of RadEditor for MOSS, which now is 5.6.2. Please upgrade to it. You can find upgrade instructions in the following online help article.
Upgrading to a newer version of RadEditor for MOSS.
Also you should now that I tested this functionality in WCM scenario. Please inform me in what scenario you are experiencing the issue. Is it WCM , webpart, or list (list, wiki, blog...)?
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