I too have this problem. I use HTML Editor (HE) most of the time, but like to switch to Visual Editor (VE) sometimes to place a link.
When I switch to VE, then go back to HE, it wants me to save the file. Upon doing so, it starts searching and replacing all of the links. The links that originally pointed to the server where our webpages are, now change so that they are pointing to my local drive.
What should be this: src="Graphics/TraceyDesignElements/HeaderTop.jpg"
Changes to this: src="file://C:\Documents and Settings\Kathleen Colvin\Desktop\Graphics\TraceyDesignElements\HeaderTop.jpg"
When I hit "save" and all the searching and replacing is done, I then have duplicates of all text and images on my page. It's a mess.
I used to be able to switch between the two, but since I updated a few months ago, I no longer can.
You can view these webpages online:
The old (good) page:
http://www.traceyroad.com/index.php
The new page:
http://www.traceyroad.com/bad_index.php
Kathy
KC Colvin