Hi, I have just overcome this problem myself.
Here’s the code that I’m using:
<?php
$settings = array('wpautop' => true, 'media_buttons' => true, 'quicktags' => true, 'textarea_rows' => '25');
wp_editor(html_entity_decode($profileuser->description), 'description', $settings);
?>
The html_entity_decode() function converts all HTM entities to their applicable characters.
**EDIT – Forgot to mention, my code’s for the user biography in the user profile section. Should be the same principle, though.