Your comments

Yup, thanks for letting me know.

I already submitted an update to Apple which was supposed to fix this issue, but it also fixes some other odd behaviour on iOS 5. The update should be available any day now.
Is there any chance you can send me the problematic file by email?
Currently, Textastic only supports monospaced fonts and assumes that all characters have the same width. This is not the case for MS Sans Serif which is a proportional font.

Also, unfortunately, Thai is a very complex script with complex Unicode properties (for example, several indivdual unicode characters can be displayed as one) and this is not supported in the current version of Textastic. I'm currently working on Textastic 3.0 and I might support Thai in that version. This largely depends on if I can make this perform fast enough.
Do you get an error message from ForkLift?
I'll try to reproduce the problem. Thanks for the detailed description!
As a workaround you could show the navigation wheel by tapping on the editor with two fingers and move the cursor one character to the right and then tap backspace/delete backward.
This shouldn't happen. Do you have any idea when exactly it behaves like that?

Currently, settings like this get lost when you copy or move a file. Maybe that's what happened to you?

Yes, I have already filed a bug with Apple. I don't know yet why this happens, but I'm actively investigating it. It only happens in the beta and it worked fine in iOS 3.2 and 4.

Thanks for your detailed report!