I’ve been doing a little research on the use of an HTML Editor for development of internal project, using ASP.NET

Aloha Editor (http://www.aloha-editor.org)

This HTML editor is the bees knees, take a look at the website and check it out, it fantastic

alohaeditor-0.23.9.zip (11.30 mb)

FCKeditor (http://www.fckeditor.net/)

The editor is distributed under the GPL, LGPL and MPL open source licenses. This triple licensing model avoids incompatibility with other open source licenses, making it possible to integrate FCKeditor whenever you want.

FreeTextBox (http://freetextbox.com/default/)

FreeTextBox is the most-used HTML editor for ASP.NET. It is compatible with IE on the PC, and Mozilla and Firefox on all platforms. It is used in major Open Source projects such as Community Server and DotNetNuke as well as excellent packages like Smarter Mail.
Buy FreeTextBox
To purchase a FreeTextBox Professional license or Distribution License with Source code, please click on one of the “Purchase” buttons below. Currently, PayPal is our payment provider. Once you click a “buy” you will be redirected to paypal where you can pay using your PayPal account or a credit card.
Professional License – $49.99
The Professional License allows FreeTextBox to be used in all applications you or your company creates on as many servers as you host, but the license does not include rights to re-distribute FreeTextBox 3.0 Professional features in applications you or your company sell. If you sell or distribute products with FreeTextBox 3.0 Professional features, you must purchase a Distribution license (see below). Upon purchase, you will receive a unique FreeTextBox.lic file which will unlock the Professional features of FreeTextBox 3.0. Professional License Agreement

TinyMCE (http://tinymce.moxiecode.com/index.php)

Open Source under LGPL

CuteEditor (http://cutesoft.net/ASP.NET+WYSIWYG+Editor/default/)

http://cutesoft.net/How+to+Buy/Licensing+Info/default/
This can be purchased from
http://cutesoft.net/ASP.NET+WYSIWYG+Editor/Purchase+CuteEditor+for+.NET/default/

RadEditor (http://www.telerik.com/products/aspnet-ajax/controls/editor/overview/)

RadEditor for ASP.NET AJAX is the leading WYSIWYG web editor. It can replace any TextBox with an intuitive Word®-like editor, which enables even non-technical users to visually manage HTML content. Also available for SharePoint 2007 (MOSS) and DotNetNuke.
Cost $999

On my research I could not find a BSD licensed HTML Editor.

The ones I have used before are
    RadEditor, very good, also very good support and backup.
    TinyMCE, very rich in features and easy to use.
    FCKeditor, little harder to use, and now with extra licences to allow for more general use