I have more info for you.
I cannot even place cuteEditor on the same page as a TabbedContainer control that ships with the AJAX toolkit.
If I do, the screen jerks around like crazy and a quick javascript error flashes at the bottom of IE and disappears so fast I can't catch it for you guys.
I have tried placing the cuteEditor inside of the tabbed container and outside of the tabbed container. Either way causes the problem.
Please keep us updated on this issue because I am looking at this tool for AJaX functionality primarily because other editors like freetextbox don't work with AJAX update panels or tabContainers.
thanks