I've released a new version of the editor. Update packages for xoops 2.0.x and 2.2.x available here:
http://dev.xoops.org/modules/xfmod/project/showfiles.php?group_id=1038

1.053 beta 2:

-Security fix according to Marijuana's report: /class/xoopseditor/koivi/dialogs.php
-Removed $_GET['url']
-Added check on $_GET['skin']
-Correction on including Xoops mainfile.php for dialogs.php;
-Added charset to dialogs.php output page;
-Removed unncessary functions for dialogs.php: getMainfile, getLanguage

-Added new function "Insert paragraph"
-Added buttons to change editor height on the fly.
-Now you can customize the editor area with css, "skins/SKIN_NAME/editor.css"
-Aded Flash support under Gecko browsers.
-Made some improvements on CSS files.
-Improved some rutines.
-Removed some redundant code.(lighter and quickie!)
-dialogs.php changed. Now all dialogs are in separated files.
-editor.js is now object oriented.
-Toggle borders rewrited. Now visual aid affects divs and forms.(thx frakblack for the idea)
-"Maximize editor" rewrited. Now it takes all avaible space and auto-fits when the browser window is resized.
-Solved bug, editor was losing text direction when changes from wyswiyg to html mode.
-Solved bug under iexplore when user edits a full html page. (Some events like context menu stopped)
-Solved bug under gecko taking body tag attributes.
-Added a workaround for iexplore (it ignored some tag attributes).
-Added a workaround for iexplore when submit the data and a metatag has the same name as the textarea.
-Now iexplore and gecko don't delete scripts.
-Now linebreaks are respected (improve come with javascript funcs). Make sure you disable Xoops convert linebreaks feature.