I'm seeing the same problem in Firefox. I enter edit mode in my application in which cute editor is displayed. I update my content. I then save it. I go back into edit mode with cute editor displayed and I can't backspace to delete text in the textarea of CuteEditor.
However, I discovered that if I type something first, any character, then it unfreezes and I can add and delete text at will and the changes all take effect.
Any idea what's going on?