I've been trying to use
ptags: true
in my yui editor config and it generates some strange behavior.
It wraps the current line in <p></p> tags which is reasonable if you press return at the *end* of a line.
However if you press it at the beginning or even at the middle of a line,
it merely adds <p>&nbsp;</p> after the text of the current line.

So for example if i place a cursor in a fresh editor window and alert out my html i get:
html=<br>

If i then type 'hello world' without pressing return i get:
html=hello world<br>

If i then press return it reformats visually and in terms of tags i get:
html=<p>hello world</p><p>&nbsp;</p>

This is still reasonable behavior as I pressed return at the end of the line,
However if i back up my cursor and press return after 'hello' (ie in the middle of the line) i get:
html=<p>hello world</p><p>&nbsp;</p><p>&nbsp;</p>

So it ignores my cursor placement and always assumes im at the end of the line,
this also means that if i attempt to back up to the beginning of the document and press
return i get:
html=<p>hello world</p><p>&nbsp;</p><p>&nbsp;</p><p>&nbsp;</p>

So I can never place any content in its own paragraph or line before the existing content
on the first line. Nor can I break up an existing paragraph into two paragraphs.

Any thoughts? is this a known bug? Or can this be the way it's intended it to work?
We've tried this both in our own code and in an example i made when testing the spellchecker found here:
http://john.martirano.net/code/spelltest/test2/
you can reproduce the problem here, commenting out ptags: true fixes the problem.
John

bump....

bump... still unresolved... anybody have any guidance??
is editor 3.0 slated to solve this issue?