a few caveats: XText installs a full set of Emacs keybindings.
This means you'll need control-q to quote any extended character like ü, ``, '', --, and *.
Also, there is complete undo/redo, which works with everything... except editing actions from XText.
For more information:
The new default behavior is to use OIF as a pasteboard filter to creat gif files. If it's not present, it defaults to a pipline of tifftopnm | ppmquant -256 | ppmtogif. The binaries for this pipeline in the appwrapper, however, are only Intel/Motorola, not HP.
Also, I don't know if OIF's color quantization is as nice as the pipeline's.