Jennifer Lampton has a video of the DrupalCamp Austin in November 20th 2011, explaining some advanced configuration with Drupal, TinyMCE and different modules.

There is a lot of modules, issues and security to keep track of when configuring your editor to Drupal, she goes through configuring and adding some good functionality.

Check out the video on her website.

Of course, we would recommend using MCFileManager and/or MCImageManager with Drupal to make it easier to work with images