For my part:
(1) Yes, I do a bit of my editing remotely.
I haven't found a program I really like to do it locally. Of of the PHP editors, PHPed might do it, but it's too unstable now--see
http://www.soysal.com/PHPEd. I like HomeSite, but I wish it had better remote file transfer abilities--I haven't figured out how its comlicated project stuff works.
Dreamweaver3 (have not tried DW4 yet) is pretty nice for a WYSIWYG (sort-of) editor, but can't do PHP too well (at least as far as I've seen).
Latency is an issue for editing remotely, and I've had my share of irritation with it. I have a wireless broadband connection (sprintbbd), and latency can really be a problem with these connections, but Sprint has done a good of getting it lower recently

100ms to FQ). My main annoyance now is jitter--the variation in latency from packet to packet. This causes a kind of irregular stutter response across the network, but recently this too has improved for me.
Anything more than 200ms is horrible interactively. Take a look at
http://www.stuartcheshire.org/papers/LatencyQuest.html (no relation

)
As for disconnects, they don't happen often for me (I used OpenSSH to connect). And I save often

.
(2) I'd be interested in Terra's choice of GUI editors as well. (I'll listen to anyone who can hack parts of the FreeBSD VM subsystem into the Linux kernel on a production box!)
As far as emacs go, I like xemacs and jed, so can't speak to the RMS thing. The trick with emacs is to get the keyboard commands to become second nature, and then you're in good shape. Makes it easier that bash, lynx, and most other unix-based programs recognize these keystrokes as well and will do the Right Thing
TM (except that ****ed pico!). ^a, ^a, ^k etc. can be your friend!
Also, when set up correctly, emacs does a pretty good job at auto-indentation with C, perl, java (JDE is great), etc.
The emacs tutorial is lame. I remember trying to follow it many times and quitting. What I did was just use the commands summarized in ORA's Linux in a Nutshell and get working on some editing while learning features as I went along. The info pages have good, um, info as well.
But don't let me tell you what to use. Use what you like, and have fun! There's certainly no "morally correct" editor, so let me covet my xemacs/jed and I won't begrudge your UltraEdit.
Geoff
[This message has been edited by gtc (edited 02-22-01@2:38 pm)]