Hmmm. WordPress 2.0.3, which Little Storping upgraded to 11 days ago, seems to be escaping characters when comments are edited or I write posts with the Bookmarklet (and I suspect it of turning off comments too). It is claimed this (known issue) can be fixed with this tuneup plugin and as soon as I get to an ftp client I will try it. In the mean time (all together now) we apologise for the inconvenience.
Update (17:44): It worked. Hurray for TxFx.net.