Hi Kenneth,
The issue is occurring on IE8 (Windows XP). Yeah, it is also occuring on http://cutesoft.net/example/general.aspx
STEPS :
1 Select some text.
2 Apply Highlight on it.
3 Place the cursor just after the highlighted text.
4 Press BACKSPACE until the highlighted text is completely deleted.
5 Enter some text at that point.
Perhaps it would have been more clear if I had an option to attach the screenshot here.
Regards ,
Biswajit Majumdar