we dont do inline editing, but on-site editing where you navigate to the page you want to update and click edit, we then highlight all dynamic content on the page and bring up the relevant form when clicked.
In our first prototypes we were playing around with inline editing, but ended up concluding that it causes more problems than it solves when you're dealing with a real website with dynamic content.
One example: you have a news section, and on the homepage the last 3 stories are pulled in, but with the body text truncated to 100 characters since more would break the design. Inline editing here will be problematic. There are plenty of other cases (just think text-overflow: ellipsis;) and there's also the contextual problem of how to communicate to the end user that he is editing structured content that might be reused in different places on the site, with an interface that pretends to be completely WYSIWYG.
We think our way of on-site editing is the best compromise between making updates easy and making the conceptual model clear.