I have just took a look at that jquery editor, I like it a lot.
I am going to try and bend this editor to my will, I will see if I can alter the styling, and also add in file browsing for images.
I have tested one nice looking jquery filemanager.
So, if you have a time to look there... It's working, I have tested it with an integration with RazorCMS ckEditor.
They have advanced editor with jquery too: http://elrte.org/
but a little big;-)
IMHO, good idea is to have a lot of editors and filemanagers - so if we have many combinations - an atacker have no easy life to hack our site (a lot's of hack's are by bad security in filemanagers and by the holes in used editors).