Interesting...thanks for trying to clarify, Adam. Unfortunately, the example you sent doesn't seem to work, so I'm still not quite clear on how this works. So does basehref only work correctly in conjunction with the absolute URLs setting? Or does it force SiteRelative URLs to become absolute if set?
Either way, its not at all clear from the documentation:
http://cutesoft.net/asp/document/index.htm#page=CuteEditor.Editor.BaseHref.html
I assumed this worked like the <base href> tag does in HTML, which is implicitly prepended to all relative URLs. Rather, this setting seems to modify all relative URLs, automatically and explicitly prepending this BaseHref URLs to them, transforming them into absolute URLs. Which is fine, I suppose, as long as that's clear to users.