I wish I had more to offer than describing symptoms at the moment, but here's another:
In my clean test setup, when my child test account was not registered at all on the root portal, the CuteSoft editor didn't even launch in the child portal of my clean test setup. When my child-only portal account was not also registered as a root portal user and I clicked the "Edit Text" link in the child portal, I got the "Failed to load impl code!" error mentioned in
http://cutesoft.net/forums/2/35985/ShowThread.aspx.
Then the behavior changed when I added and then removed my child account from the root: Now, when attempting to edit text in the child portal, my DNN session is killed once I open the Cute Editor. If I hit "Update" or if I attempt to refresh the editor, I receive a login prompt.
I speculate that the problem may have something to do with cookies. It's just speculation though. Does the Cute Editor for DNN use cookies explicitely - and/or might it perhaps use a DNN API that uses cookies in a way that DNN doesn't like?
Sorry I'm such a user here. Thanks yet again for the attention.