Viewing a post in HTML editing mode results in enetity encoded html being non-encoded

[DD32]

Steps to reproduce:

1. Create a new post in Visual Editor, Enter some text, Include some HTML in the Visual view (That you expect to be visible in the blog post as entity-encoded)
2. Switch to HTML view, Notice that the HTML is entity encoded as expected
3. Save the post (You can replace the above steps with editing a previous post with HTML in it too, as long as WordPress will default to opening in the HTML mode)
4. WordPress remembers that you prefer the HTML mode, and loads up in that mode. Notice the HTML is no longer encoded
5. Switch back to the Visual editor, Notice that now the previously entity-encoded HTML is being treated as inline HTML, Ie. <a href="">link</a> shown in the visual editor, will now appear as a Link.
6. Saving the post now will result in the HTML being posted as HTML, rather than entity-encoded HTML

In both cases WordPress prints the code the same: (Mind you, HTML mode doesnt have the <p> tags)

<textarea class='' rows='25' cols='40' name='content' tabindex='2' id='content'><p>This is an example of HTML</p>
<p>&amp;lt;a href="Testty"&amp;gt;Test Link&amp;lt;/a&amp;gt;</p>
</textarea>

Not sure if htmlspecialchars() or htmlentities() should be used.

This function[htmlentities()] is identical to htmlspecialchars() in all ways, except with htmlentities(), all characters which have HTML character entity equivalents are translated into these entities. - ​http://au2.php.net/manual/en/function.htmlentities.php

Works fine

Added a patch that does basically the same thing, plus ENT_NOQUOTES and a filter.

(In [6767]) htmlspecialchars when loading content into html editor. Props DD32 and andy. fixes #5796