bug? Multiple CRs+&nbsp in text editor script

Embedded text editor (Dolphin tool for creating messages, blogs, etc) is acting strange all of a sudden:

When user hits enter (once), text editor interprets it as 3 times carriage return. If systems sends the content out as an email it also adds multiple &nbsp for one single CR.

Is this a bug? Anybody seen this before?

Thanks,

Dirk