[bluenoter]

I can't figure out which editing mode(s) one needs to be in to use Deadlift's method. But in any case, I'd recommend doing the following, which sounds simpler to me:
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Enhanced (WYSIWYG) editing mode:

Here is a link to the Daily Kos.

Yep, I used this method:

Originally Posted by bluenoter

Type or Paste the desired "name" and highlight it, then click the "links" icon and enter the URL in the resulting popup box.

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Standard editing mode:

Here is a link to the Daily Kos.

I used the same method (the one quoted above).
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Basic editing mode:

Here is a link to the Daily Kos.

There's no link icon (and therefore no popup) in the Reply form. AFAIK, one needs to type in a phrase of the following pattern, only without the asterisks:

[*URL="http://www.dailykos.com/"]the Daily Kos.[/URL*]

If one wants to produce "named" links, it would be a lot simpler to switch editing modes, IMO.