When using the Flash Manager to add a flash object into the content, causes the HTML mode to be non editable. 

The following example code is a possible workaround for this behavior:

<telerik:RadEditor ID="RadEditor1" runat="server" OnClientModeChange="OnClientModeChange">
</telerik:RadEditor>

<script type="text/javascript">
    function OnClientModeChange(editor, args) {
        var $ = $telerik.$,
            mode = editor.get_mode(),
            contentAreaElement = editor.get_contentArea(),
            editorModes = Telerik.Web.UI.EditModes;

        if (mode === editorModes.Html) {
            $(contentAreaElement).hide();
        } else {
            $(contentAreaElement).show();
        }
    }
</script>