2008/12/4 Gregory Maxwell gmaxwell@gmail.com:
Instead I propose: Have javascript mediate the edit box so that inline references are converted to little red [R] text, moving your cursor into the [R] area by clicking or arrowkeying causes it to expand to display the full reference. You can add references by simply typing them like normal and then they'll collapse when you navigate away, or you can press some "insert reference" button that pops up a dialog that asks for the relevant information which then types the completed reference for you.
That's definitely the direction we're thinking in for the Stanton usability project (same basic principle can be applied to templates). If someone wants to create a prototype or mockup already, it would be more than welcome.