Ok, I've given up on the insert text at carat idea, it seems to be impossible cross browser. I decided I will focus on getting help for this problem then.
How do I get a link to insert text in the textbox that was last focused upon?
<form name="form1" action="">
<textarea name="textarea1" onfocus="focus(this)"></textarea>
<textarea name="textarea2" onfocus="focus(this)"></textarea>