Thanks to Drew for posting a response on "Edit Box Size".
Am a huge supporter of WordPress on hosted (leased) Linux server sites. Do a fair amount of tech support for friends. Most times since version 2.x.x I just look at (read) the code, the changes, security issues, and typically upgrade.
The work-around as Drew described worked for me as a fix in Text (formerly HTML) Mode. It also works in Visual Mode as Ebixdame (Dita) described. Both also apply to new posts (for each author who applies the fix) that are created afterwards.
However, we have dozens of installations and many of our reporters are not tech savvy. Since WormholeRiders (WHR) runs over 30 WP news sites, and based on the number of other challenges described, we are going to hold off moving from version 3.4.2 for a bit.
Keep up the great work WordPress Team! Thank you!