I am not sure if this is the right place to post this issue, but here goes.

I upgraded from 4.4.1 to 4.5.0, and switched the default editor to FCKeditor. I can see the Save and Cancel buttons in the toolbar when I click to edit Module Titles. But not so for the content of Text/HTML modules. In fact, I can see the Edit icon when I hover the Module Title, and not so when I hover the Text/HTML content.

I tried a 4.5.0 fresh install and the inline editor displays the basic toolbar. Went through the web.config and can't seem to find what went wrong. Though not critical, I very much like the fact that editing is confirmed by clicking Save or Cancel.

How do I check the version of the editor installed?

You are right, I am using option 1.

However, I do not see the Edit icon when I hover the Text/HTML and when I click on the content itself, I do not see the basic toolbar. I am also missing the step to Save or Cancel the edit. Whenever I click out of the content area, the updates are saved.

Option 2 is working perfectly fine.

Yes, I can see that menu.

I'm referring to the Edit icon that appears when I hover the module title. Clicking that icon allows me to edit the module title and then choose Save or Cancel.

That same icon doesn't appear when I hover the Text/HTML content and when I do an inline edit, the basic toolbar doesn't appear too.