WYSISYG is back! I've installed TinyMCE and it's available for all to use. Safari and Opera compatibility is limited, so if you are a Mac or Opera user, your best best is to use Firefox or disable the Rich Text Editor in your user profile. Underneath each textarea, you can also disable rich text editing on the fly.
One of the nice things is that you can easily insert images in to your entries, not just as attachments. Here's my suggestion on how best to do this:
1. Open a free Flickr account at http://www.flickr.com
2. Upload the image you want to insert to Flickr
3. In the TinyMCE toolbar, you will see an Insert/Edit image icon
4. When you click that, you'll be prompted to enter the URL to the image
5. Copy and paste the address of the image file from Flickr in to this field.
6. Set the alignment to either Left or Right depending on how you want your text to flow.
7. Set the dimensions to something reasonably small. This will only scale your image to make the post look pretty. Someone can right-click your image and open it in another window or tab and see it full-size.
8. You'll likely want a border size of 0.
9. Set the H and V space attributes to 5 or so to give you a little whitespace between your text and image.
10. Click Insert and you're done!
Enjoy and let me know if you have any trouble using it!