http://twitter.com/#!/georgetasioulis/status/113169454493483008

Wasn’t really that big of a deal after all 🙂

First I downloaded the updated TinyMCE package (v.3.4.4) The Tool posted on the CS-Cart forums here for my CS-Cart installation (v.2.2.1).
Then using a text editor I opened up lib/js/tinymce/tiny_mce.js for editing, searched for entity_encoding and changed it from named to raw.
You may find quite a few instances of the string entity_encoding in the file, but the correct one to change is this:
[js]validate:true,entity_encoding:"named",url_converter:p.convertURL[/js]

Screenshot of the fixed file