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I managed to hack in a change to get the width to work. I modified standard_text_editor.tpl and added parameter "width=95%" to the table with class=markup_panel. Still not sure what was limiting the width though, markup_panel doesn't seem to modify width, so I guess the default size on the javascript editor is small?

As for the cursor problem, no idea there. Did the standard_text_editor change at all from 7.5.7 to 7.5.8?