This is similar to the issue I posted earlier (http://cutesoft.net/forums/thread/83480.aspx) but slightly different so I'll post the example here. Seems that html code with <br> is getting changed into <br style="cursor:default"><span> </span>. What this is doing is adding a space character in front of all the content. I tried to delete the space in design view but it will just come back after I switch between design and code view. These spaces are only in design view but doesn't show up in code view or preview.
Here's an example, also tried on your demo and it is happening:
Paste this html into the code view
<strong>Heading2 <br />
When you view in design, everything below Heading1 has an extra space in the beginning:
I tried this on Chrome, Safari and IE and this is happening on all the browsers. Can you please disable this feature please?