I spent several hours of reading and tinkering and could not for the life of me, get FCKeditor to work.
The problem a lot of people encountered (me included) is the lack of understandable documentation detailing creation and proper placement of FCKeditor related directories and files. What follows is the proper installation process.
I suggest before begining, undo all your previous FCKeditor tinkering.
Hope this works for you, as it did for me:
Step 1
Put the Drupal provided module file (the file you download from Drupal) "fckeditor-4.6.0.tar.gz" in the Drupal sub directory "modules".
Step 2
Unzip (extract) the files from "fckeditor-4.6.0.tar.gz" from its location inside the Drupal directory "modules".
This extraction will create under the Drupal sub directory "modules" a new sub directory called "FCKeditor".
The extraction will also place new files in the new sub directory "FCKeditor" and create under the directory "FCKeditor," a sub directory named "ssip".
Step 3
Create under the sub directory "FCKeditor" a directory called "lib".
Step 4
Put Inside of the new "lib" directory, the latest distribution file (such as fckeditor_2.0.tar.gz) from www.fckeditor.net
Step 5
Unzip (extract) the files from "fckeditor_2.0.tar.gz"
It will create under the sub directory "lib", subdirectories called "editor", "_ samples", _testcases" and a bunch of files