www.ektron.com
they have a flash-based editor...it's not very good yet, but it does the trick...look in their WYSIWYG editors section...
also, if you hunt around, like at flashcomponents.com (or something like that) you will find some rudimentary free flash text editors...
the reason these things only work on IE5.5+ is because of the contenteditable tag which m$ incorporated into their OS...if the other browsers supported this (which is not a compliant w3 tag i may add) then they could play along...
and oh yes, i forgot...you could check this out...
www.textpattern.com (home of the one of the greatest bloggers ever and oliver) and LOOK for "textile" or "texpattern"...it's a rudimentary text editor that has gone about as far as these thing will go until they are standard practice in browsers...his works with php...
(i sure hope safari makes use of these things soon)
vaska