Some fixes coming out for the Rich Text Editor as seen in changelog.
IE 7 users who are having trouble with the cut-tag button in the RTE: this is blocked by a setting in IE 7 that blocks scripted windows. To temporarily enable scripted windows, one goes into Internet Options > Security > Custom Level and temporarily enables Scripted Windows. Thanks to henrylyne who figured this one out! (There may still be more issues. Alas.)
Anyone who has any clue what is causing the general RTE fuckery (which seems to come in several flavours) or even how to reliably reproduce it, do please hit up http://www.livejournal.com/support/ and share.
Disclaimer: not a dev. Not an employee. Not even a user of the RTE. Just a volunteer.