Hi Katy,
Did you see my note about how to do paste?
When you do the paste, use the ICONS for paste on the toolbar. That's especially important if you are using Firefox. There are ICONS to paste from plain text (pasting from Notepad) or paste from Word. They are on the upper row to left marked with T and W. With Firefox, you get a pop-up box to assist doing the paste.
Using that method to paste will create correct code, i.e. the paste tool actually does a correct format of code and if not used will later cause the editor to RELOOK at code and drop the formatting, included added format. The RELOOK occurs when you 1) switch the box to HTML and back to standard, 2) when you save the page and later reenter the Saved Listing, 3) when you create a new listing from Saved (and enter the new listing for edit).
The old method of pasting directly to the box with the right-mouse click and paste or using Ctrl-V was the problem. That's because it's bypassing the editors format step.
Once old code is corrected and you adopt this simple method to paste, the editor seems to work perfectly. This is one of the better editor tools around, so we just need to figure-out best practices with its use.
Try it....
Danno