Kevin,
It's something a lot of people want, but it's a huge effort to get right. HTML is a huge spec, and creating an engine that works natively with it is not really a one-man job. I've moved on to completing wxWebKit myself, but it's more a labor of love right now and so I can only work on it periodically. There's a lot of demand to use it, but not so much to work on it.
However, unless you don't plan to support copy and paste and any but the most basic formatting, or do conversions as Phil does, you're really going to need to use something like wxWebKit to get HTML editing capabilities. An HTML editor is really complex enough that it almost certainly should be done in C++ to perform reasonably well and will require several developers to get a solid working engine.
A lot of people, especially at the Python level, haven't come forth to put that level of effort in, which is why it's still an unsolved problem.
Thanks,
Kevin
What kind of help do you need? I mostly use Windows and I know just enough C++ to be dangerous, although it's been a few years since I've used it. My primary programming language is Python.
I do have VS2003 (aka 7.1) so I can probably build wxWebKit at least. I will admit to being somewhat green at building as well though. If you have the patience to deal with that (i.e. probably troubleshooting my inane questions), than I'd be happy to help out.
Mike