The permissions on uploaded files are set by your FTP client and/or the default settings on the server. If after FTP'ing your files to your hosting provider you find the permission are incorrect, I recommend you consider using a different FTP client. I've had success with Filezilla and Transmit. (I've found CyberDuck and some others to incorrectly set permissions.)
The generated code indicates the URL "http://www.facebook.com/rsagym" was set in the "Title" field of the Hyperlink panel rather than in the Hyperlink field. It needs to be entered in the editbox next to the "Hyperlink" label in the Control Strip.
thank you - I will look at the FTP side of things then and I see my USER mistake. Ooops - don't usually make silly mistakes like this but it is a new program for me - I think I will stick with it since I got quick help. Thank you.
Not a silly mistake. Many users have been similarly confused by this UI. We've made some refinements in this area for 2.0 to hopefully make it clearer where to enter the URL link versus the "title" attribute (which most browsers display as a tooltip on the item or text range).