TInyMCE is not working – only able to edit in HTML

Hello Everyone-

New Word Press 2.6 install. Noticed that when I went to post – the “visual” editor isn’t working – so I can only edit in HTML mode. I’ve read and tried all the “fixes” for this – and nothing works. But my situation seems to be a little different.
My Environment:
* This is the second Word Press install to my hosting account.
* Previous to adding this second domain, the first Word Press worked fine.
* Now both Word Press installs can not edit in visual mode.
* I support a third Word Press for our club, with the same hosting company, single domain… it’s worked and is still working.

What I see:
* On a normal working post, in HTML mode, you see the tab shading around the word HTML – and of course all the HTML buttons. On my dysfunctional sites, I see the tab shading around the word Visual, and then all the HTML buttons. Nothing happens when I click on the HTML tab. All the HTML buttons do work correctly.
* When I do a post… another strange thing happens… seem to be having issues with apostrophes too. I type the word I’m – save it and it displays as I”’m (on the site). This second issue is consistent. The same things happens with ” (quotes).

One Test:
I tried the “wp-includes/js/tinymce/tiny_mce_config.php” test.
* From the club’s site, works as expected.
* From my new site and the original site, I get this Page Load Error:
Content Encoding Error
The page you are trying to view cannot be shown
because it uses an invalid or unsupported form of compression.

Install:
I’ve deleted this install twice. Re-installed into the root, and then the second time into a sub folder.

Server Structure:
From root, all my installs go into a folder – public_html. Inside the public_html folder are four sub folders, “the original blog”, “my new one”, “cgi-bin”, and “images”.

I will appreciate any suggestions for trouble shooting or possible solutions. Thank you in advance for your time.

john-