Hey TomHusband, we’re having the exact same link problem using version 2.1.2.
Another user, 3 months ago, had this problem using 2.1.3 and apparently fixed it by using the old TinyMCE file from 2.1.2 (my current version).
My site has a ton of links to be made and I’ve love the visual editor to work…
Moshu, I owe you my first-born child. Thank you!
For anyone else who reads this, the post containing the very *very* simple code to fix the pages on the navigation bar is:
http://rmarsh.com/2007/01/11/blix-theme-and-wordpress-21/