This is PICO and as you can see, it works just like kwrite or notepad. 
When you get to the end of a line, it just wraps it for you so that you 
can carry on typing.

You can see that at the bottom, you need to be able to press the [Ctrl] 
key for the functions to have any effect. Therefore you need to be on a 
terminal that passes on the keystroke as modified by the control key.

I found that PuTTY works okay (tested over an SSL link from a Windows 98SE 
machine) with control characters and arrow keys being passed on in an 
appropriate way.

If, however, you find that you cannot use these keys (function keys are 
used for some functions as well so it is worth testing them), you need to 
learn the survival-basics of vi as it is not only the 
'just-about-lowest-common-denominator' it is fairly ubiquitous and will 
get you out of situations where there are no alternatives.