Adam,
Im having the following problem. I changed the style.css.aspx as instructed, all works great (as seen below [figure 1]). The problem occurs when I change the class of the text at the start of the textarea. (See figure 2, "textBold" no longer displays correctly because I changed the class to "textBold").
Here is the example of the source:
<span class=textbold>Value packed colour
printing<br><br></span>* The 'ready out of the box' packaged
DocuPrint C525A is delivered with everything you need for immediate....
So if i manually edit the source and remove the initial span tag, the class dropdown looks fine. Also another workaround I found was to add a space before the initial span tag ( ), this also fixed the problem (but not acceptable for the client, as they dont know html).
Just to let you know, we just ordered CuteEditor, great product (and support).
Figure 1.
Figure 2.