AceEdit is a special AceText feature that enables you to quickly edit some text in another application with AceText, and continue working with that application when you're done editing. The default hotkey is Win+Alt+X. When you press this hotkey when working with an application other than AceText, AceText will pop up. If you like to use the mouse, right-click on the AceText tray icon and select AceEdit from the menu. If the icon is not visible, you need to start AceText first.
First, select the text you want to edit in the application you're working with. Then press the AceText hotkey. AceText will pop up with the Clipboard tab active, ready to edit the text you selected.
When you're done editing, press the AceEdit hotkey again, or press Ctrl+Enter, or click with the mouse to activate the target application. AceText will then send the modified text back to the application you were working with. If you change your mind, press the Escape key to cancel AceEdit. Either way, AceText will bring to front the application that was active when you initiated AceEdit, so you can continue working straight away.
AceEdit is particularly useful when working with applications that provide very small boxes to enter lots of text, or that lack a spell checker or handy text formatting features.
By default, AceText will try to extract the text from the application by simulating a Ctrl+C keystroke, and paste it back by simulating the Ctrl+V key combination. If you want to use AceEdit with an application that copies or pastes differently, you can configure that application in the Applications Preferences.