I am having the same problem reported by Beezodog five months ago. I upgraded to Mountain Lion, and now WordPress visual editor is not working properly. Some buttons (e.g. bold, underline…) work fine, but the Link* button does not work, and the Text editing tab is not functioning either.
System 10.8.2
Chrome 23.0.1271.101 (but same problem using Safari and Firefox)
Macbook Pro
Site: biathlontario.ca
*Yes, I know I have to highlight a word/phrase in the post in order to activate the Link button. The button is active (not-greyed out) but it does not pop up a link window. And yes, popups are permitted in my Chrome settings.