You actually need an older version of the rich edit control -- the newer Office versions have additional features but also more bugs (like the one you mentioned).
Exit UR and delete C:\Program Files\UltraRecall\riched20.dll, then reinstall UR, keeping
Use Office rich edit control unchecked, and optionally checking the
Install rich edit control with table support option.
See here for more details:
http://www.kinook.com/Forum/showthre...?threadid=2853