Your comments

Thanks, I will try to implement this.
I'll fix this in the next update. I can confirm that Good Reader renders it correctly while Textastic doesn't at the moment.
Interesting idea! I'll consider it.
Yesterday I got my first answer from the US Department of Commerce... yay! After nearly two months... Still waiting for the login to their SNAP-R interface, though. I had to sent a statement which "item" I want to export and to which country. I submitted the info and am now waiting for an answer...
I just tried to reproduce this by creating a small php file with a single line comment. For me, this works. Here's a screenshot: http://www.textasticapp.com/support/php_comment.png

Maybe this is a problem with a special case in your file? Can you please send me a screenshot illustrating the problem? The file itself may help, too.
There is no iOS 4.1 for iPad. It was 3.2.2 -> 4.2.1 - see http://en.wikipedia.org/wiki/IOS_version_history
Maybe you got me wrong (or maybe I misunderstood you). I just wanted to say that two popular editors on the Mac (TextMate and TextWrangler) wrap lines just like you expected. They don't wrap spaces at the end of a line. TextMate does this for all whitespace characters (spaces and tabs). When you set a wrap column in TextMate (View -> Wrap Column), you can enter as many spaces as you want but it will only break the line as soon as you enter a non-whitespace character.

Textastic on the other hand currently always wraps the line at the specified column, even if the line ends in whitespace characters.

I'm going to change the behaviour in Textastic to what popular editors do.
Yeah, I have that kind of control.

I thought about using 2 fingers left and right to move the cursor one character instead of one word. This could be a replacement for the cursor keys found on a normal keyboard. You can move to a word boundary rather fast by just tapping on a word.

I'll try out some variations, but that's a great starting point!

A problem could be the new 4 and 5-finger multitasking gestures Apple is trying out in the iOS 4.3 beta...