You seem to be missing the button that switches modes - it should be in the upper right corner. I was looking at the code for vb3.8.7 and didn't see any way for just that button to be missing - you can set the editor to standard mode, but that deletes most of the buttons across the top.
Could it be that you're just missing that image? It should be images/editor/switchmode.gif (although if that image were missing, it would probably show something depending on the browser). Did you change the template editor_toolbar_on?
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