It turns out that Telligent has 2 editor modes in the post editor: Simple and Default.
In an effort to keep things "Simple" they shipped with the editor in Simple mode. You can change the editor to Default Mode by editing 2 places in the correct file. The Advanced editor offers more options such as posting Smileys, Flash, Tables, and other options. I think it was a smart idea to ship with the simple toolbar, as many of these options would be daunting for the "simple" target they are going for.
I found this tip on the GCMS support forum:blog which actually found it from the
Using a text editor (like notepad) find the file /graffiti-admin/posts/write/default.aspx and find the element called <GlowEditor:Editor and change the attribute toolbarset from simple to “Default”.
Here is a screen shot of the Default Toolbar on the editor:
Here is a screen shot of the Simple Toolbar on the editor:
Of course we are still in Beta 2, so I am not sure if this change will work in release.
This still works in GCMA version 1.0, and it appears to be case sensitive needing to be "Default" as the value.