I totally agree with the people who suggested you to use the WYSIWYG module, but I would like to qualify my answer by briefly explaining the context of the birth of that module.
Drupal - for as much as I love it - has historically sucked at managing any kind of content that is not plain text. Until version 5 came out it was a real pain to handle formatting, not to speak about images. While in the same years WordPress already had an excellent editor shipping with the default installation and Joomla! (Mambo Server, at the time!) was doing pretty well too.
Things greatly improved with D5 and D6 but efforts where put by developers in very different directions, maximising the investment of manpower and minimising the return, each module seriously lacking in different areas. At some point, a certain consensus developed on the idea of creating a standard, pluggable architecture for WYSIWYG in Drupal, possibly to be implemented in the core. A sort of API as they already exist for forms, database, messaging, mailing and pretty much every other core functionality of Drupal.
The WYSIWYG module is the fruit of that effort: that is the module that defines the API which are going to be implemented in the Drupal core.
In other words: the WYSIWYG module is not only the best existing module for what you want to do, but it is also the only one that most probably will be ever ported to D7 and following releases: if you learn how to handle it, you will have peace of mind for a few years to come, and you will have an ever-increasing choice of supported editors.
So I invite you not to give up despite the complexities of the setup. Stack Overflow and the Drupal IRC channels are excellent places to find support if you get stuck.
HTH, best of luck! :)