Nice plugin from Headzoo, and its being updated like crazy, so if you find a problem, let them know, and they will fix it pretty quick.
Check out the details:
Edit n Place is a free WordPress plugin that lets you edit your post inline; meaning you can edit a post without going in to the WordPress admin panel.
Have you ever published a post and then noticed when reading your blog that you made a typo, or misspelled a word? It’s kind of a pain to sign back into the WordPress admin panel just to fix a typo. Well, Edit n Place lets you edit your post right there on the actual web page. People with with editing privileges (admins) will see an `Edit n Place` link at the bottom of each post. Just click the link and the whole post becomes editable. When you’re done editing, just click the `Save n Place` link and you’re done!
Grab it at Headzoo.