Maybe this is not a bug, but the way Nedit is intended to operate?
I can copy text out of Nedit and paste into other windows (like Notepad),
but cannot copy oout of notepad and paste into Nedit. It is like Nedit has
it's own clipboard.
First off, this forum should be closed. The real NEdit forum is firstname.lastname@example.org.
Now, notepad sounds like you're using NEdit on MS Windows, perhaps with the help of Cygwin, but definitely with the help of some X server for MS Windows. NEdit uses the clipboard mechanism of the X Window System (short X), while MS Windows has a different clipboard mechanism. So, basically your X server is responsible for translating between the X clipboard and the MS Windows clipboard.
Since this often doesn't work (there is more in the way), I've uploaded some workaround to Niki
Note, you need setclip, getclip, which is part of Cygwin. There are also direct ports of these small command line tools to set or get the MS Windows clipboard.