You can try it out on openacs.
I just used it here last night. http://openacs.org/xowiki/pages/en/Assessment+Admin+Index
I wrote up some documentation for a customer here:
For clients with either dotLRN or dotFOLIO we hook up the XINHA editors to the users shared docuemnts folder in thier own file storage package. This lets us put this functionality into Forums etc.
This is a better user experience for the end user but it still requires that we accept image tags in the rich text widget.