Your comments

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...
Interesting. I just tried how TextMate and TextWrangler/BBEdit handle it and they indeed do what you wrote. I didn't know that this is the way it is implemented in other text editors.

So, technically, this is not a "bug", as this behaviour was intended by me :)

But, I'll see if I can change the behaviour in an update. I guess the same should happen with tabs?
Thanks for your feedback. I'll see if I can improve this in the future.
Use the WebDAV server. This is essentially a lighttpd web server with WebDAV extensions.
Interesting. Right now I don't have an explanation for this behaviour, sorry.
That's strange. It could possibly be a problem with a firewall that can understand the FTP protocol. But why would someone want to prevent FTP upload?
Yes, Textastic 2.0 needs iOS 4.2 – that's probably the reason.