0.4.2 is out.
I've got the editor working, go to town. It includes basic formatting commands a the ability to switch between the visual editor and raw html. I'll add more formatting options over the new couple days.
I'm not trying to implement a full featured html editor, just enough to be useful.
I've also removed the Hide Element menu item. It was clunky and caused issues under FF 3.0 sometimes. Instead drop html into the editor and clean it up there.