Mark,
I'm not sure if I can give you an exact answer, but I can maybe point you in the right direction. To alter the Enter key handling you will need to edit the javascript for the FTB control.
First make sure your control is setup to use the javascript files that came with the control by setting the following parameters on your FTB control, JavaScriptLocation="ExternalFile" SupportFolder="~/path to your .js files/"
Next you will need to edit the FTB-FreeTextBox.js file. Search for the function called FTB_FreeTextBox.prototype.Event
The line starting "if (ev.keyCode == FTB_KEY_ENTER)" controls the handling of the Enter key. If you want to disable the inserting of line breaks you could maybe change this to,
if
(ev.keyCode == FTB_KEY_ENTER) {
return false;
}
else if.........
I'm not sure if I can solve your second point, because I don't know what you use to generate your postback, and so don't know why it wouldn't be working when you have inserted an image, but maybe this will help a little.