[Plugin: Front-end Editor] this is way fucking cool

Could you paste some example input and the expected, as well as the actual, result?

Sure! Thanks for asking.

The > is getting converted to & gt;
and the < is getting converted to & lt;

Here’s a sample piece of text where this is happening:
(Note: the php tags are shortcode to activate the “Syntax Highlighter Evolved” plug in.

[php]
	// turns on "featured image" for posts
		add_theme_support( 'post-thumbnails' );

		add_filter ( 'user_can_richedit' , create_function (  '' ,  'return false;')  , 50 ); 	// removes visual editor

	// register three menus function register_menus() {
		register_nav_menus( array(
		'primary-menu'	=> __('Primary Menu'), 'secondary-menu' => __('Secondary Menu'), 'tertiary-menu' => __('Tertiary Menu')
		) add_action('init', 'register_menus');

	// here is probably how you'd modify your excerpt site wide

		function new_excerpt_more($more) {
			return 'moo'; }
		add_filter('excerpt_more', 'new_excerpt_more');

	[/php]