Did away with the mouse dragging business.  I’m now setting the cursor to the closest (white)space to the right of the word you click on, determined by coordinates within the paragraph.  Hopefully it’s a little more user-friendly,

Also got it running in Internet Explorer so all the Windows folks can join in ;-)  Might work in Safari now too…I guess anything’s possible

Demo v0.0.2 (Mozilla/Firefox, IE)