I'm using FCKedit 2.0fc on Firefox 1.0.4 on Debian Linux (integrating it with apache mod_python).
When using the 'inline' method to place the editor pane, I couldn't cut/copy/paste between the editor pane and anywhere else - elsewhere on the page containing the editor or any other application.
But when using the textarea method to place the editor, cut/copy/paste works fine, as does everything else.
I'd recommend the textarea method over the inline method.
My only minor gripe is that the editor can't seem to intercept familiar editor keyboard shortcuts such as ctrl-B for bold, ctrl-I for italic etc. But this is no great drama.
textarea method fixes cut/paste issues