OK, for me this seems to have been a .htaccess issue.
I was using mod_rewrite to redirect from mydomain.com to http://www.mydomain.com:
RewriteCond %{HTTP_HOST} .
RewriteCond %{HTTP_HOST} !^www.mydomain\.com [NC]
RewriteRule (.*) http://www.mydomain.com/$1 [R=301,L]
I added a couple of lines to my .htaccess file *before* this to exclude anything to do with wordpress (in the ‘blog’ directory) from the redirection:
RewriteCond %{REQUEST_URI} ^/blog/.*
RewriteRule .* – [L]
RewriteCond %{HTTP_HOST} .
RewriteCond %{HTTP_HOST} !^www.mydomain\.com [NC]
RewriteRule (.*) http://www.mydomain.com/$1 [R=301,L]
I haven’t quite figured out why that was causing problems, but this seems to have fixed the wordpress editing issue.
That change meant that my blog urls wouldn’t be redirected to the www domain any more. To fix that, I installed Justin Shattuck’s very straightforward wordpress-www-redirect plugin:
http://www.justinshattuck.com/wordpress-www-redirect-plugin/
Everything seems to be working as intended now.
I’m also on Hostgator and having the same problem.