I've been trying to come up with a suitable solution for inline images for a while now without a ton of success. I'm sure you have had a client who wants to be able to insert images inside the main area of their text. Generally, I try to steer clients in the direction of using CCK fields for content images, but given the fixed nature of this approach, it doesn't work well for longish' tutorials with screen shots. Writers that use Drupal will often times want to use wysiwyg to get their uploaded images into the content above or near the focus of the topic.
I use the TinyMCE/IMCE bridge combo, but it doesn't work well to resize the actual image, leading to manually scaled heavy images, in many cases. IMCE will create thumbnails, but as for resizing the content image, it just uses the original image. The BUI editor has an implementation which satisfies the requirement's but isn't perfect, but a good step forward. I found this issue queue search helpful, but only led me to the bui editor solution: http://drupal.org/project/issues/imce?text=imagecache&status=Open&priori...
If you're interested in checking out the BUI editor implementation see this link:
http://ufku.com/drupal/bueditor/contributions/imagecache
Personally BUI editor is probably a good thing for a power user or a more advanced web writer, but being that its more of a web text editor than a wysiwyg, it also loses focus of the target audience, everyday mom and pop webmasters... Thoughts?