Why is there a need between the 'Smart Text Editor' and the 'Basic Visual Editor.?"
Embeding photos and videos works in both, the 'Smart Text Editor' is much simplier for embeding media, we added the 'basic visual editor' because some folks prefered that WYSIWYG way of posting. It is a bit confusing, and we'll clear up the names of each editor.
Here's some posts you might find useful:
What's the difference between the two editors?
http://support.lefora.com/2008/04/08/whats-difference-between-text-editor-and-visual-ed/
How to embed photos in either of the editors (with how-to videos):
http://support.lefora.com/2008/07/18/how-to-embed-photos-in-your-posts-using-the-differ/
How to embed videos in either of the editors (with how-to videos):
http://support.lefora.com/2008/07/18/how-to-embed-videos-in-your-posts-using-the-differ/
When you submit a post in one of the two editors, we make it your default for all future posts. You can change back at any time, though we don't recommend changing back and forth within a post, as that might loose some of the embed media or fontsytle markups.